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UK energy firm rejects Apollo bids

US-based global private equity investor Apollo Global Management has had three approaches to acquire UK energy services and consulting firm John Wood Group rejected by the Aberdeen-based company, according to a report by The Guardian.

US-based global private equity investor Apollo Global Management has had three approaches to acquire UK energy services and consulting firm John Wood Group rejected by the Aberdeen-based company, according to a report by The Guardian.

In a stock market filing made on Wednesday, the FTSE-250 company said it had turned down the unsolicited offers from Apollo, with the most recent – a 230p per share all-cash offer made in January – having valued the business at £1.59 billion.

Shares in John Wood group closed at 145.80p in London on Wednesday, giving the business a market value of £1 billion, but jumped sharply in early trading on Thursday morning rising 32% at one point to 203.6p.

A statement from John Wood group said: “The board carefully considered each of the proposals, together with its financial advisers, and has engaged on a limited basis with Apollo.

“The board unanimously rejected each of the proposals, having concluded that they each significantly undervalued the repositioned group’s prospects.”

Under UK takeover rules, Apollo has now has until 22 March to announce a firm intention to make a takeover offer or walk away.

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