On March 7, John Wood Group plc revealed that Apollo Global Management, Inc. had submitted a fourth proposal for a cash offer to the board, which valued Wood shares at 237 pence per share.
In a statement posted on its website, Wood noted that its board believes the latest proposal “continues to undervalue the group and is therefore minded to reject”. Wood said in the statement that the board will continue to engage with its shareholders and revealed that it intends to engage further, on a limited basis, with Apollo.
“There can be no certainty either that an offer will be made nor as to the terms on which any offer might be made. Further announcements will be made as appropriate,” Wood said in the statement.
“Any offer for Wood is governed by the code. Under Rule 2.6(a) of the code, Apollo must, by not later than 5.00 p.m. on 22 March 2023, either announce a firm intention to make an offer for Wood in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code,” Wood added.
The company noted that its latest announcement had been made without the consent of Apollo. When Rigzone asked an Apollo spokesperson for comment on Wood’s latest statement, the spokesperson revealed there was “no comment from Apollo”.
Last month, Wood announced that it had received three unsolicited, preliminary, and conditional proposals from Apollo regarding a possible cash offer to acquire the entire issued and to be issued ordinary share capital of Wood.
The most recent approach of those three was received on January 26, 2023, and proposed a cash offer to acquire the entire issued and to be issued ordinary share capital of Wood at a price of 230 pence per Wood share, Wood noted in a statement posted on its website in February.
At the time of writing, the London Stock Exchange website shows that Wood’s share price is valued at 217.11 pence. This price stood at 135.15 pence on December 30, 2022, and jumped from 154.7 pence on February 22, 2023, to 199.55 pence on February 23, 2023, the site shows.
To contact the author, email andreas.exarheas@rigzone.com
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