Sky News has learnt that Sparta Capital Management Ltd. has written to John Wood Group PLC (LSE:WG.) chairman Roy Franklin to urge him to explore a US listing or a sale of the company after seeing its shares slump by more than a third during the last 12 months. In its letter to Mr. Franklin, Sparta, a London-based investment manager, praised the company for its ?many operational achievements? since the implementation of a new corporate strategy nearly 18 months ago.

The London-listed company did not reject that offer, which was the fifth proposal submitted by Apollo, but saw the American private equity behemoth abandon its interest just over a month later. ?If the UK public markets are unwilling or unable to engage in Wood's story, we believe you should undertake a strategic review and actively seek alternative solutions,? Sparta's letter, which has been seen by Sky News, said.

The investor added that it noted ?recent successful attempts by corporates to move their primary listing away from markets which they have determined do not recognise the true worth of their businesses?. Sparta, which is understood to be a top-ten shareholder in Wood, cited the US, where shares in its rivals Jacobs and KBR are publicly traded, as ?a logical potential listing venue?. ?If you conclude that shareholder value will be maximised through a sale of the company, we encourage you to engage with any suitable bidders who may emerge during this process,?

the letter added. Sparta's expression of frustration at Wood's share price reflects a growing disquiet among investors in many London-listed companies about the valuations attached to them. Sparta declined to comment about its letter to Mr. Franklin.

Wood Group has been contacted for comment. On April 15, 2024, shares in the oil and gas engineering company closed at 140.4 pence, giving it a market capitalization of just over £975 million.