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British oilfield and engineering services company John Wood Group (OTCPK:WDGJF) (OTCPK:WDGJY) should move its London Stock Exchange listing to the United States or consider a sale, activist investor Sparta said on Tuesday Capital Management.
Wood (OTCPK:WDGJF) (OTCPK:WDGJY) shares have fallen by a third to record lows since Apollo Global Management abandoned its attempt to buy the company last yearbut exchanged +1.5% in London following Sparta’s letter to Wood’s board of directors.
Sparta founder Franck Tuil said he was “frustrated” by the stock’s continued underperformance and “if the UK public markets are unwilling or unable to engage with Wood’s story, we believe you should undertake a strategic review and actively seek alternative solutions.”
Tuil said it was “time to recognize that the next chapter in Wood’s journey could best be supported by different owners” and urged the company to “explore how best to maximize shareholder value, including the sale of the society”.
Sparta said the company has initiated a turnaround, but the share price is struggling under the “UK midcap curse”.
UK shares have lagged their US counterparts’ valuations, causing frustration among executives and investors, including Shell, whose CEO recently said the company has “a place that clearly appears to be undervalued.”