Written By The past few months have been nothing short of a corporate tug of war between two industry giants – Wood Group and Apollo. As investors eagerly awaited the outcome of the fourth takeover bid by Apollo, tensions ran high. But, as it turns out, Wood Group’s shareholders had other plans, and they finally put an end to the uncertainty surrounding the future of their company. In this blog post, we take a closer look at what went down during one of the most talked-about takeover bids in recent times and explore what this means for both companies moving forward. So buckle up and read on!
Wood Group shareholders vote against Apollo Global Management’s fourth takeover offer
Wood Group shareholders have voted against Apollo Global Management’s fourth takeover offer, according to a statement from the company.
The offer, worth £2.4 billion ($3.1 billion), was rejected by more than 60% of shareholders.
This is the fourth time that Apollo has made an offer for Wood Group, and the second time that shareholders have voted against the deal.
Wood Group said in a statement that it “remains confident in its stand-alone strategy and is committed to delivering value for all shareholders.”
Apollo first made an offer for Wood Group in February 2018, but the deal was rejected by shareholders in May.
What the rejected offer means for Wood Group
Wood Group’s investors have rejected Apollo Global Management’s fourth takeover offer, meaning that the company will remain independent for the time being. This is good news for Wood Group, as it gives them more time to explore other options and find the best possible deal for their shareholders.
The rejected offer also means that Wood Group is no longer a takeover target, at least for the moment. This gives the company some breathing room to continue with its turnaround plan without worrying about being acquired by a larger rival.
It is still unclear what the future holds for Wood Group, but for now, the company remains in control of its own destiny.
What’s next for Apollo Global Management
There are several potential outcomes for Apollo Global Management now that its fourth takeover offer for Wood Group has been rejected. The private equity firm could:
-Walk away from the deal: This is unlikely, given that Apollo has already made four offers, indicating its strong interest in acquiring Wood Group.
-Continue to negotiate with Wood Group: Apollo could try to renegotiate a lower price or offer other concessions to sweeten the deal.
-Launch a hostile takeover bid: If negotiations fail, Apollo could launch a hostile takeover bid, which would involve going directly to shareholders to try to win their support.
-Partner with another company: Apollo could team up with another company to jointly make an offer for Wood Group. This could increase the chances of success, as well as provide synergies between the two companies post-acquisition.
How the rejected offer affects shareholders
Wood Group investors have rejected Apollo Global Management’s fourth takeover offer, valued at £2.2 billion ($3 billion).
The rejection of the offer means that shareholders will continue to own shares in the company, and they will be entitled to any future dividends that are paid out. However, it is worth noting that the value of their shares may fluctuate depending on Apollo’s continued interest in acquiring the company.
If Apollo does not increase its offer price, then it is likely that shareholders will hold onto their shares in the hopes that another buyer will emerge. However, if Apollo does increase its offer price, then shareholders may be more inclined to accept the deal in order to cash out at a higher value.
Ultimately, it is up to each shareholder to decide what to do with their shares, and they should weigh up the pros and cons of each option before making a decision.
Conclusion
Wood Group investors have rejected Apollo’s fourth takeover offer and it remains to be seen what will happen next for the company. While this could mean that a fifth offer is put on the table, it could also signal that further negotiations between the two companies are likely if an agreement is to be made. In any case, Wood Group shareholders have made their position clear by rejecting Apollo’s latest bid and the situation now requires careful consideration from both parties before any major decisions can be taken.
