Wood will remain independent

Shares in FTSE 250 listed Wood plunged by a third after its pursuer Apollo Global Management decided not to make a firm offer for the Aberdeen-based energy services group.

The US private equity company had proposed a 240p a share deal valuing the company at £1.7bn, a 59% premium.

It was given a revised deadline of Wednesday to make its intentions known following a number of proposed offers since the turn of the year.

After Apollo announced it was not intending to make an offer, shares in Wood closed 74.9p (34.2%) lower at 144.5p.

Responding to today’s announcement, the Wood board said it “remains confident in Wood’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.

It said it will continue with its medium term targets of increasing adjusted ebitda by mid to single digits and to return to positive free cash flow in 2024.

“As set out in the Q1 trading update on 11 May 2023, there is good momentum across all business units which has continued since the end of Q1, with expectations for the full year unchanged.

“The board is grateful for the substantial engagement of its shareholders and the support of its customers and employees throughout this process.

“The management team looks forward to continuing to deliver against the strategy set out in November 2022.”

In March, Ken Gilmartin, who took over as CEO of Wood Group last year, said the company had failed to deliver for shareholders after the company posted an operating loss of $568 million. He said the board was looking to sell a number of businesses.

On Friday, e-commerce group THG announced that it had terminated potential takeover talks with Apollo Global Management.