Scottish oil services giant rejects takeover bid approaches


Ian McConnell
Wed, 22 February 2023

Wood has rejected the bid approaches

Aberdeen-based energy services group Wood has tonight revealed it rejected unsolicited bid approaches from private equity player Apollo Global Management.

Wood said its board had "engaged on a limited basis" with Apollo, before rejecting the proposals.

It made the announcement after the stock market had closed.

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The company told the London Stock Exchange: "The board of Wood notes the recent speculation and confirms that it has received three unsolicited, preliminary and conditional proposals from Apollo Global Management Inc, regarding a possible cash offer to acquire the entire issued and to be issued ordinary share capital of Wood.

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"The most recent approach was received on 26 January 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...The board carefully considered each of the proposals, together with its financial advisers, and has engaged on a limited basis with Apollo. The board unanimously rejected each of the proposals, having concluded that they each significantly undervalued the repositioned group's prospects."

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Shares in Wood had finished 3.7p higher on the session at 154.7p.

Wood said: "Any offer for Wood is governed by the Code (The City Code on Takeovers and Mergers). Under Rule 2.6(a) of the Code, Apollo must, by not later than 5.00pm 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 (the Takeover Panel) in accordance with Rule 2.6(c) of the Code."