Shares in Pinewood Technologies, also known as Pinewood.AI, experienced a significant drop of over 29% to 308.06p following the announcement by Apax Partners that they were withdrawing from negotiations. The private equity firm cited challenging market conditions as the reason for their decision, stating that they did not intend to make an offer.
Reports of talks between Apax Partners and Pinewood first surfaced at the end of January, with rumors of a potential 500p-a-share cash offer being discussed. However, Apax’s decision to walk away has left Pinewood’s future uncertain.
In response to Apax’s announcement, Pinewood released a statement reaffirming their confidence in the company’s long-term prospects. The board emphasized Pinewood’s leading position as a mission-critical provider of embedded technology to automotive retailers and OEMs, highlighting their high recurring revenues and strong OEM partnerships.
Despite the setback with Apax, Pinewood’s directors remain optimistic about the company’s ability to execute its strategy and achieve its medium-term FY28 guidance of underlying EBITDA between £58-62 million. They believe that Pinewood is well-positioned for future success.
Apax has left the door open for a potential return with an offer for Pinewood within six months under certain conditions, such as a third-party bid, board approval to resume discussions, or significant changes in circumstances.
Pinewood’s stock had reached a two-year high above 550p last September following a North American deal, but has since dropped back to around 350p at the start of the year.
UPDATE: Share Price Details
The article has been updated with the latest share price information to provide readers with the most recent developments in the Pinewood Technologies story.
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