8th May 2024 12:56
(Alliance News) - Shares in John Wood Group PLC leapt on Wednesday after it rejected a fresh takeover attempt.
Shares in the Aberdeen, Scotland-based consulting and engineering for energy and materials sectors rose 14% to 187.47 pence in London on Wednesday. It has a market value of around GBP1.30 billion.
John Wood said it had received an "unsolicited, preliminary and conditional" proposal from Dar Al-Handasah Consultants Shair and Partners Holdings Ltd, Sidara, regarding a possible cash offer.
Sidara is a family-owned engineering company, founded in Beirut, with more than 300 offices in 60 countries.
The proposal, received last Tuesday, valued each John Wood share at 205p each.
John Wood concluded that it "fundamentally undervalued Wood and its future prospects," and rejected the proposal unanimously on Wednesday.
Sidara has until June 5 to either announce a firm intention to make an offer for Wood or withdraw its approach.
It is the latest attempt to win over John Wood.
In May 2023, Apollo Management Holdings LP admitted defeat in its long-running pursuit of the company.
Apollo, a private equity firm owned by Apollo Global Management Inc, a New York-headquartered asset management firm, made five attempts to secure John Wood's backing for a takeover.
The final approach was pitched at 240p per John Wood share, 17% above Sidara's proposal. Apollo initially offered 200p per share.
By Jeremy Cutler, Alliance News reporter
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