ABERDEEN oil services giant John Wood Group has, after “feedback from shareholders”, decided to engage with suitor Apollo Management Holdings on the US private equity player’s takeover approach at a "final price" of 240p a share.
Noting that Apollo, on behalf of certain investment funds managed by it, had on April 4 announced that it had submitted to its board a fifth proposal to acquire Wood at a “final price” of 240p per share in cash, the Aberdeen company told the stock market today: “The board remains confident in Wood’s strategic direction and long-term prospects, following a transformative year in 2022, including new executive leadership and a new strategy. However, having now weighed all relevant factors, particularly feedback received from Wood shareholders, the board has decided to engage with Apollo to see if a firm offer can be made on the same financial terms as the final proposal. Accordingly, the board will grant Apollo access to due diligence materials.”
Shares in Wood were in early afternoon trading up seven per cent or 15p at 226.8p.
Wood noted the final proposal from Apollo is “subject to a number of reservations, under which Apollo can make an offer on better or less favourable terms, as further described in Apollo’s announcement”.
The Scottish company declared: “Apollo has stated to the board that it values the skills and capabilities of Wood’s employees and believes the company is well positioned in its markets and at the forefront of the energy transition and industrial decarbonisation.”
Wood added: “There can be no certainty that any offer for Wood will be made. Further announcements will be made as appropriate.”
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