British engineer John Wood Group is latest target of US private equity predators Apollo

John Wood Group final night time grew to become the latest British target of private equity predators after a £1.59billion bid was launched by Apollo Global Management.

The engineering group revealed it obtained three bids from the New York-based large, together with a 230p-per-share supply final month.

It rejected the approaches after ‘cautious consideration’, concluding they considerably undervalued the agency. Apollo has a month to resolve if it needs to make a suggestion or will probably be banned from doing so below City takeover guidelines.

Takeover target: John Wood Group revealed it has received three bids from New York-based Apollo, including a 230p per share offer last month

Takeover target: John Wood Group revealed it has obtained three bids from New York-based Apollo, together with a 230p per share supply final month

John Wood shares closed up 2.5 per cent, or 3.7p, at 154.7p earlier than information of the bids emerged.

Apollo’s curiosity in John Wood follows months of hypothesis the group would develop into a target as shares hovered at 14-year lows.

Activist investor Sparta Capital warned in December that bosses wanted to bolster its share worth to keep away from a swoop.

John Wood is the latest agency on the London Stock Exchange to fall prey to private equity companies taking benefit of a weaker pound and battered share costs.

On Tuesday US-based Providence Equity lodged a 105p-a-share supply for Hyve Group, which has additionally struggled since Covid, valuing the occasions organiser at £306million.

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The Footsie has been ravaged by takeovers over the previous few years with G4S, the AA, Morrisons and Ultra Electronics being purchased.

Last yr noticed a big drop in deal-making within the City, as rates of interest soared within the wake of Russia’s invasion of Ukraine.

But Apollo’s swoop, sizzling on the heels of the Hyve supply, will add to fears overseas bidders are nonetheless on the hunt for affordable British companies.

John Wood helps to construct buildings together with oil rigs and refineries with £5.3billion in annual gross sales. It was arrange in 1982, becoming a member of the London Stock Exchange in 2002.

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