By Guy Taylor
Apollo Global Management has today confirmed that it does not intend to make a £1.7bn takeover offer for the oil and gas engineering giant, John Wood Group.
The firm said this morning that it “does not intend to make an offer for Wood.”
The announcement follows speculation in April that Wood were warming to a £1.7bn takeover offer from the private equity firm.
Wood had previously rejected four proposals and refused to engage with the bidder, according to reports in the Sunday Times, but had been considering the fifth and final proposal since April 17.
Apollo’s fifth proposal was a final bid of 240p per share in cash, a 20 per cent increase on the first offer.
John Wood Group had reported on Thursday that its quarterly revenue rose due to steady demand, as it awaited clarity on the buyout offer from Apollo Global.
Following Apollo’s announcement this morning, Wood said that the board remains confident in the firm’s “strategic direction and long-term prospects and believes that, following a transformative year in 2022, including new executive leadership and a new strategy, Wood is well placed to deliver substantial value for shareholders.”
Last year, Wood Group sold its environmental consulting division, which trimmed the firms net debt down to $393m from $1bn as it aimed to fulfil its growth strategy.
In 2017, the group announced a £2.2bn takeover of its competitor Amec Foster Wheeler. This prompted increased debt and legacy lawsuits, including a damages claim which was eventually settled for $115m.
As of 31 March 2023, the Apollo Group had approximately $598 billion of assets under management across its investment strategies.
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