Wood Group (LON: WG.) shares jumped Monday morning after the engineering and consulting business revealed it will engage with Apollo Management for a firm offer.
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The company had rejected four proposals from Apollo previously, but the fifth, made earlier this month, has altered its stance. The offer is at a price of 240p per share in cash.
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The latest proposal represents a 20% premium to the initial proposal submitted to Wood Group on January 11, 2023, which was at a price of 200p per share in cash.
Wood Group shares are currently up 7.4% at 227.4p at the time of writing on Monday. It initially hit 228.6p on the news, its highest level since June 2022.
“Having now weighed all relevant factors, particularly feedback received from Wood shareholders, the Board has decided to engage with Apollo to see if a firm offer can be made on the same financial terms as the Final Proposal,” Wood Group said in its statement Monday. “Accordingly, the Board will grant Apollo access to due diligence materials.”
Apollo now needs to announce a firm intention to make an offer for the company by May 17, Wood Group stated, extending the previous April 19 deadline.
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