Apollo Global Management has re-emerged with a final proposal to take over John Wood Group.
American private equity firm will pay 240p for each share, an increase from 237p last month. This new sum values the Scottish engineering and energy consultancy at approximately PS1.66 billion.
Apollo stated that any deal would come at a 20% premium to the 200p-per share offer it made to Wood’s board back in January. The proposal at 240p was described as an attractive valuation that would provide Wood’s shareholders with a compelling opportunity to monetise the holdings.
Wood’s board rejected all previous offers because they undervalued company. Yesterday Wood stated that it would “continue engaging with its shareholders” but there was no guarantee that an offer would be made.
The share price of the company was at its highest since May 2012, when it was above 240p. Last night, the shares were down by 4 1/2 p or 2.3% to 200p.
Ken Gilmartin (51), who assumed the role of Wood’s chief executive officer in July 2013, unveiled his strategy in November, with a focus in key areas like energy, minerals, and life sciences.
The 2022 underlying revenue was $5.4 billion, an increase of 3.9 percent. Pre-tax losses increased to $694.5million, from $172 million in the prior year. This was primarily due to impairment charges of goodwill and intangibles assets of $542 million. Wood’s total order book value was $6 billion.
Wood employs over 35,000 people worldwide and is involved with design, operations, and maintenance projects.
Apollo was listed on the New York Stock Exchange. It had $548 billion in assets under management as of the close 2022. Wood can be offered to the company until April 19, at 5 p.m., or it may walk away for six month.