SHARES in Aberdeen’s biggest company dived by more than 36% yesterday on news that an American suitor does not intend to make an offer for the business.
Wood shares closed the day at just over 138p – down 80p – though they were up slightly at 140p this morning.
In the middle of last month, the leading engineering and consultancy group announced that it had agreed to engage with Apollo Global Management after it tabled a firm bid valuing the Granite City business at £1.7billion.
Wood said then it would open its books for scrutiny by the US private-equity firm after rejecting several previous approaches.
Apollo’s fifth and final proposal was for 240p a share.
But Wood said in a statement yesterday that it noted the announcement by Apollo that it does not intend to make an offer.
The Granite City firm added: “The board 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.
“Our medium-term targets set out in November 2022 are to deliver adjusted EBITDA growth at mid-to-high single-digit compound annual growth rate, with momentum building over time, and to return to positive free cash flow in 2024.
“Furthermore, as set out in the Q1 trading update on May 11, 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.”
Wood’s worldwide workforce is now around 37,000, with more than 6,000 of them in the UK.
The company’s North Sea operations have an offshore workforce of 1,100 – making up almost a quarter of the Aberdeen team.
