Wood Group’s days as an independent company look certain to end after its board said it will recommend a new offer from Sidara at a reduced price.
Its Dubai-based suitor has today indicated it will make an offer and now has until 5pm on Thursday to make its intentions clear.
It has confirmed it will price its offer at 30p per share, 5p below its previously proposed price. The latest offer values the Aberdeen company at £207m.
On 14 April Wood’s board indicated it would be “minded to recommend” the higher price and has today said it would be similarly minded to recommend the lower offer.
In a statement issued just before today’s 5pm deadline set by the Takeover Panel, the board said it was “continuing to work with Sidara” which has now completed its due diligence.
Wood said there is now commercial alignment with Sidara and Wood’s lenders on the detailed terms of the proposed refinancing that Wood is continuing to work with its auditor on its audited accounts for the financial year ended 31 December 2024.
Sidara informed the Wood board on Saturday 23 August in writing “that it is committed to making an offer to acquire the entire issued and to be issued share capital of Wood, once the remaining pre-conditions have been satisfied, but that, having completed its due diligence, any offer would be at a reduced price of 30 pence in cash per Wood share.”
The Wood Group board said it “has evaluated the reduced possible offer with its financial advisers and concluded that it is at a value that the board would be minded to recommend to Wood shareholders.”
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