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Wood Group turns down another takeover bid by Sidara: British oil services and engineering firm Wood Group has rejected a higher acquisition bid from Dubai’s Sidara, according to a bourse disclosure on Friday. This is Sidara’s third bid for the British company.
ICYMI- 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 company later submitted a revised bid of GBP 2.12 per share on 14 May, marking a 3.4% upward revision from its previous bid, and valuing the company at GBP 1.47 bn. Despite the increase, Wood Group’s board unanimously felt that the offer still undervalued the company.
The new bid: Sidara’s revised bid offered to buy the consultancy firm at GBP 2.20 per share, marking a 3.8% upwards revision from its previous bid and 7.3% from its first. Wood’s board unanimously rejected the offer, on the grounds that it continued to “significantly undervalue” the group.
Sidara still has a chance: Sidara has until 5 June to submit another offer or withdraw its bid.
REMEMBER- 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 closed up 5.2% at GBP 1.89 on Friday.
Advisers: JPMorgan Chase and Morgan Stanley serve as joint financial advisers and corporate brokers to Wood.
