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Wood Group turns down Sidara’s revised takeover bid: British oil services and engineering firm Wood Group has rejected a higher acquisition bid from Dubai’s Sidaramade a week earlier, according to a bourse disclosure on Wednesday.
REFRESHER- Sidara had submitted a preliminary offer on 8 May to buy the consultancy firm at GBP 2.05 per share, which was rejected by Wood’s board, which said that it “fundamentally undervaluing Wood and its future prospects.”
The new bid: Sidara submitted a revised bid of GBP 2.12 per share, marking a 3% upwards revision from its previous bid, and valuing the company at GBP 1.47 bn.
The rationale: Despite the 3% increase, Wood Group’s board unanimously felt that the offer still undervalued the company.
Sidara still has a chance: Sidara has until 5 June to submit another offer or withdraw its bid.
Wood is not in the best position: Last month, shareholder Sparta Capital Management urged Wood to consider listing in the US or selling the company after negotiations with buyout group Apollo to buy the company fell through. Apollo’s bid — which it withdrew last month — had valued the company at GBP 1.66 bn at the time. Wood’s shares had fallen about 25% over the past year, according to Bloomberg, giving it a market value of GBP 1.1 bn.
Market reax: Wood’s shares closed up 1% at GBP 1.87 on Wednesday.
Advisers: JPMorgan Chase and Morgan Stanley serve as joint financial advisers and corporate brokers to Wood.
