Week Ahead

Deadline looms for Sidara to make Wood decision

Wood Group awaits a decision this week from its suitor

Scottish energy company Wood Group could be entering its final days as an independent business as another deadline looms this week for its Dubai-based suitor to make a formal offer or walk away.

Earlier this month the Aberdeen company gave Sidara access to due diligence materials. Sidara must decide by 5pm on Wednesday if it will formalise a bid on the same terms as its final proposal of 230p per share, valuing the company at about £1.6 billion.

The deadline can be further extended by the board of Wood with the consent of the Takeover Panel.

Dar Al-Handasah Consultants Shair and Partners Holdings, known as Sidara, announced on 29 May that it had submitted a fourth proposal for Wood.

On 5 June the board of Wood, which was led for many years by Scottish tycoon Sir Ian Wood, said “it remained confident in Wood’s strategic direction and its fundamental prospects.

“However, having now weighed all relevant factors including, in particular, feedback received from Wood shareholders, the board has decided to engage with Sidara to determine if a firm offer can be made on the same financial terms as the final proposal.

“Accordingly, the board will grant Sidara access to due diligence materials.”

Wood’s willingness to engage with Sidara followed expectations that the deal was doomed, given its resistance to three previous approaches from Sidara. Apollo Global Management walked away from a proposed deal last year.


Monday 1 July

  • UK mortgage applications
  • Nationwide UK house price index
  • Ofgem’s new energy price cap for July to September comes into effect

Tuesday 2 July

  • Sainsbury’s Q1
  • British Retail Consortium shop price survey
  • EU unemployment
  • EU inflation

Wednesday 3 July

  • Deadline for Sidara to decide whether to bid for Wood Group

Thursday 4 July

  • Scottish Mortgage Inv Trust AGM
  • UK General Election
  • Purchasing managers’ indices (PMIs) for the UK construction industry

Friday 5 July

  • Halifax house price index in the UK

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