No deal

Wood rejects third takeover proposal from Sidara

Wood Group solar
Wood Group continues to reject offers of a takeover

Energy services company Wood Group has rejected a third unsolicited takeover proposal from the Middle East group Dar Al-Handasah Consultants Shair and Partners Holdings, known as Sidara.

The latest cash offer of 220p per Wood share represents an increase of approximately 3.8% to the previous proposal of 212p submitted on 14 May which was a 3.4% uplift on the original 205p proposal submitted on 30 April.

In a statement this morning, the Wood board, together with its financial advisers, “concluded that it continued to significantly undervalue the group and its prospects. Accordingly, the board unanimously rejected the third proposal on 23 May.

Shares in the company rose by 9.25p, or 5.2%, to 189.25p, well short of the proposed offer. Analysts believe it is only a matter of time before a bidder delivers a knock-out proposal, though interested parties seem unwilling to match or go above the rejected 240p from Apollo last year.

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.