On April 30, John Wood received an unsolicited offer from Dar Al-Handasah Consultants to buy the company at 205 pence per share. The multinational oil and gas services company unanimously rejected the proposal, deeming it to fundamentally undervalue the company and its future prospects. The announcement triggered a 13.05% rise in the share price to 186.53 pence.
John Wood’s strategic response
In a press release, John Wood specified that the offer was preliminary and conditional. The Group carefully examined the offer, but stressed that there was no certainty that a firm proposal would be made. The rejection of the offer reflects management’s confidence in John Wood’s ability to generate significant shareholder value through its current strategy.
Growth potential and outlook
John Wood’s Board of Directors remains optimistic about the Group’s growth prospects. The energy market continues to evolve towards more sustainable solutions. The aim is to offer significant opportunities for energy consulting services. John Wood’s management is now concentrating on executing its corporate strategy, aimed at capitalizing on these trends.
Investor reaction
The announcement of the offer and its rejection had a significant impact on John Wood’s shares. The share price climbed 25% before dropping back to a 13% gain. This signals investor interest in a potential transaction. Dar Al-Handasah Consultants has not yet confirmed whether it plans to return with an improved offer.
John Wood’s rejection of the takeover offer underlines management’s confidence in its strategy and growth potential. The Group will continue to focus on achieving its long-term objectives, while remaining open to future discussions.
