John Wood Group’s private equity suitor has dropped its £1.7bn takeover plan.
US firm Apollo Management said it would not be making an offer for Aberdeen-based engineering business, just two days before the 17 May deal deadline.
Apollo had put forward five bid proposals, with the fifth for 240p a share in cash, valuing the group at around £1.66bn.
Wood, which only decided to engage in talks with Apollo last month, after rejecting the first four approaches, said its board “remains confident in Wood’s strategic direction and long-term prospects”.
A statement read: “Following a transformative year in 2022, including new executive leadership and a new strategy, Wood is well placed to deliver substantial value for shareholders.
“The management team looks forward to continuing to deliver against the strategy set out in November 2022.”
Wood first revealed in February that it had rejected three unsolicited approaches from Apollo, saying at the time that it believed each “significantly undervalued the repositioned group’s prospects”.
Wood has around 35,000 staff, largely specialising in engineering and consultancy for the energy, minerals, chemicals and life sciences sectors.
It offloaded its environmental consulting division last year in a move to reduce its debt by £805m.
The company appointed a new chief executive - Ken Gilmartin - last summer, who has been leading a strategy overhaul at the firm.
It has been left with a large debt pile since taking over rival Amec Foster Wheeler for £2.2bn in 2017, which also saw it face legacy lawsuits, including a £92.6m settlement made last year for a damages claim filed in 2016.
Shares in Wood fell by 41% at one stage on Monday morning after the announcement, with the stock having soared since February amid the takeover interest.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
