PRIVATE equity powerhouse Apollo stepped up its London efforts yesterday with two eye-catching stock market moves and the announcement of a new West End hub.

First, Wood Group - the oilfield services and engineering firm - said it had opened the books to Apollo after the New York-headquartered firm made a fifth bid for the company, totally £1.7bn.

Then hours later the embattled retailer THG, which has had a torrid time on the public markets since listing in 2020, confirmed that it had received a non-binding, "highly preliminary" proposal from Apollo.

All that came on the same day the firm announced a new, four-floor European 'hub' to be located at the heart of the West End, in the new Soho Place development off Tottenham Court Road.

It adds up to a significant uptick in Apollo's presence in the capital, with boss Marc Rowan saying "London is a global financial hub [and] we have assembled a growing, diverse and highly talented team."

Wood Group, whose board said yesterday it still believed in the firm's strategy, said that after "feedback received from Wood shareholders" it would engage with Apollo "to see if a firm offer can be made on the same financial terms as the Final Proposal". Investors appeared to bet a deal would be forthcoming, with shares up seven per cent, adding to a 60 per cent jump since the start of the year and the first indications of Apollo's interest.

The decision to open the books to due diligence gives Apollo another month to confirm a final offer.

THG, meanwhile, said it was responding to "press speculation" about an offer, though Apollo's name had not been mentioned in a weekend Mail on Sunday report.

THG's controversial boss Matt Moulding described the process of listing in London as having "sucked from start to finish" in an interview last year. The share price shot up by more than 40 per cent on yesterday's news, though still sits 88 per cent down on its original float price.

The bids will play into a wider narrative that the UK market remains underpriced, with a host of take-private deals over the past two to three years.

(c) 2023 City A.M., source Newspaper