Shares in Wood, the Aberdeen-based engineering and consultancy services giant, nudged up nearly 1.5% after it asked for more time for a possible takeover bid.
The London-listed company said it had requested and been given an extension to the deadline for a formal offer to be made under City “put up or shut up” (PUSU) rules.
Wood revealed in late February it had received three “unsolicited, preliminary and conditional proposals” from Apollo Global Management, which is based in the US.
This was followed by a fourth unsolicited approach on March 7.
Latest proposal valued Wood at about £1.5bn
Worth £2.30 a share, the latest proposal gave the firm a valuation of roughly £1.5 billion.
As in the previous approaches, Wood said its suitor continued to undervalue the business.
In an update today, the Aberdeen firm said Apollo now had until 5pm on April 19 to make a firm offer – or walk away. Apollo previously had only until next Wednesday.
Annual accounts imminent
Wood is due to release annual accounts on March 28, which was a factor in it seeking the PUSU deadline extension.
There is still no certainty an offer will be made “nor as to the terms on which any offer might be made”, the FTSE 250 firm said.
Wood’s shares were each worth 205.9p at market close.
The company has forecast a drop in earnings and revenue for its 2022 results.
Adjusted earnings before interest, taxes, depreciation, and amortisation are expected to come in at around £307-£316 million, down at least 30% from the year before.
Revenue is predicted to slide to about £4.4bn, compared to £5.25bn in 2021.
The international group – employing about 35,000 people in 60 countries – has been adversely impacted by unfavourable currency exchange rate movements to the tune of around £225.4m.
Wood changed its chief executive last year, with Ken Gilmartin, who took over from Robin Watson in July, pledging to make cash generation his “top priority”.
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