Revised price

Wood evaluating fourth offer proposal from Sidara

Wood House
Wood Group is being pursued by a Middle East firm

Middle East group Sidara has made a fourth and final proposed offer for Aberdeen energy services company Wood which is being considered by the board.

In a statement, the board of Wood said it had received a new cash proposal form Dar Al-Handasah Consultants Shair and Partners (Sidara) of 230p per Wood share, valuing the company at £1.59 billion.

Wood said the proposal is being evaluated and a further announcement will be made in due course.

Sidara has been given until 5pm on 5 June to decide whether to make a formal offer. It has stated that this latest proposed price is final and represents a 52% premium to the closing Wood share price on 29 April 2024, that being the date prior to the first proposal made by Sidara.

It is also a 30.4% premium to Wood’s 52 week high share price as at 29 April 2024, excluding any days when Wood was in an offer period.

Wood has not engaged with Sidara since it made its first approach and Sidara said it does not believe that its proposal can be progressed unless there is engagement.

Dan Coatsworth, investment anlayst at AJ Bell, noted that Wood has rejected three offers from Sidara, adding “market reaction to the final one doesn’t bode well – the shares slipped to 185p which implies this deal is also dead in the water.

“Wood Group hasn’t engaged in any discussions with Sidara since the first approach and that suggests it has no interest in being gobbled up.”

The latest offer price is just below the 240p per share that Wood rejected last year from Apollo which then walked away. Some shareholders may hold out for Apollo to return, or another bidder to gatecrash the process.

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