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

John Wood Group became the latest UK target of private equity predators last night after Apollo Global Management launched a £1.59 billion bid.

The engineering group revealed it has received three bids from the New York-based giant, including an offer of 230p per share last month.

It rejected the approaches after “careful consideration” and concluded they significantly undervalued the company. Apollo has a month to decide whether to make a bid or be banned under City takeover rules.

John Wood shares closed 2.5 percent, or 3.7 pence, at 154.7 pence before news of the bids came out.

Apollo’s interest in John Wood follows months of speculation that the group would become a target as stocks fluctuated at a 14-year low.

Activist investor Sparta Capital warned in December that bosses should raise the stock price to avoid a nosedive.

John Wood is the latest company on the London Stock Exchange to fall prey to private equity firms taking advantage of a weaker pound and battered share prices.

On Tuesday, US company Providence Equity submitted a 105 pence per share bid for the Hyve Group, also struggling since Covid, valuing the event organizer at £306 million.

The Footsie has been plagued by takeovers in recent years, buying G4S, the AA, Morrisons and Ultra Electronics.

Last year saw a significant drop in deal making in the city as interest rates soared in the wake of the Russian invasion of Ukraine.

But Apollo’s flight, just after Hyve’s bid, will heighten fears that foreign bidders are still on the hunt for low-cost British companies.

John Wood helps build structures including drilling rigs and refineries with an annual turnover of £5.3 billion. It was founded in 1982 and joined the London Stock Exchange in 2002.