John Wood Group PLC (LON: WG) ended nearly 7.0% up after announcing plans of engaging with Apollo Global Management over a potential takeover.
How much is Apollo willing to pay?
Earlier this month, Apollo had offered to buy the engineering and consulting company for £1.66 billion that valued each of its share at 240 pence.
At the time, Wood Group had said the offer undervalued the company. Now, though, it wants to explore if the private equity firm is willing to make a firm offer on the aforementioned terms.
Apollo now has till May 17th to either make a formal bid or walk away. Remember that today’s development by no means is a confirmation that the buyout will indeed happen.
Year-to-date, shares of John Wood Group PLC are up 60% at writing.
Wood Group listened to its shareholders
According to John Wood Group, it was primarily the feedback from shareholders that made it engage with Apollo Global Management.
The stock market news arrives less than a month after the British multinational reported a net loss of £356.3 million for the full year. Nonetheless, it said in a press release 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.
Last year, the London-listed firm promoted its Chief Operating Officer Ken Gilmartin to the role of its CEO. Wall Street currently has a consensus “hold” rating on WG.
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