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Wood Group turns down Sidara takeover offer: LSE-listed oil services and engineering firm John Wood Group ’s board of directors unanimously declined an unsolicited, conditional purchase proposal from Dubai-based infrastructure firm Sidara (formerly Dar Group) to fully acquire the company for GBP 1.4 bn, according to a bourse disclosure. Wood Group’s statement came following reports from Bloomberg earlier in the day signaling interest from Sidara in a stake in the Aberdeen-based firm.
The rationale: Sidara had submitted a preliminary offer to buy the consultancy firm for GBP 2.05 per share, a proposal Wood Group deemed was “fundamentally undervaluing Wood and its future prospects.”
Sidara still has a chance: Wood has set 5 June as a deadline for Sidara to submit another offer or withdraw its bid.
Wood is in a tight spot: 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, Bloomberg reports, giving it a market value of GBP 1.1 bn.
Market reax: Wood’s shares rose as much as 26% in intraday trading, before closing up nearly 17% at GBP 1.92, putting Sidara’s offer at a 7% premium above yesterday’s closing price and 24% above Tuesday’s closing price of GBP 1.65.
Advisers: JPMorgan Chase and Morgan Stanley serve as joint financial advisers and corporate brokers to Wood.
ICYMI- Sidara sold a 19% stake worth USD 1.4 bn in engineering group Worley last month. The stake sale saw Sidara’s share in the Australian firm shrink to 4.5% after it had been Worley’s largest shareholder.
Background: Dar Group recently rebranded to Sidara, a holding firm with 17 brands under its belt, including Middle East-focused Dar. The company is currently working on building Dubai International Financial Centre’s new AED 1.1 bn tower, slated for completion by April 2027.
OTHER M&A NEWS-
ADX-listed crypto firm Phoenix Group completed its acquisition of a 12.5% minority stake in Dubai-based web3 gaming firm Rekt Studios yesterday, with the acquisition executed through Phoenix’s wholly-owned subsidiary, Phoenix INV Holdings, Zawya reports. The company had previously said the transaction was valued at USD 2.5 mn.
Background: Phoenix’s board gave the acquisition the green light last month. The crypto conglomerate has doubled down on its efforts to expand its footprint since debuting on the ADX in December to strong investor appetite. The company shelled out USD 187 mn for BTC mining machines from Bitmain Development and snagged a 25% stake in UAE-based content monetization platform Lyvely.
