Wood Group extends Sidara offer deadline for second time
Scottish engineering and consulting business Wood Group has extended the deadline for Dubai's Sidara to make a formal takeover offer for the second time.
The company announced that it would be pushing the so-called 'put up or shut up' deadline, due to expire on Thursday, by another month.
Sidara, formally known as Dar Al-Handasah Consultants Shair and Partners Holdings, now has until 15 May to either announce a firm intention to make an offer for Wood Group or walk away.
"There can be no certainty that an offer will be made even if the pre-conditions are satisfied or waived," Wood Group said on Thursday.
This is the second extension of the PUSU deadline following the initial approach received from Sidara in February, when the latter made a non-binding proposal of 35p per share, valuing the company at £242m. Sidara also said it would inject $450m into the business as part of a potential deal, but was still undergoing due diligence before making a formal offer.
"Work continues on a range of alternative refinancing options to provide the company with an appropriate and sustainable long-term capital structure. Having carefully considered the viability of these options together with its financial advisers, the board of Wood currently believes that the possible offer represents the better option for Wood's shareholders, creditors and other stakeholders," Wood Group said in an update last week.
Sidara first approached Wood Group last year, but talks collapsed in the summer "in light of rising geopolitical risks and financial market uncertainty", as both parties failed to agree on terms.
Wood Group's shares are likely to be suspended from trade from 30 April as the company delays its full-year results "in light of extensive work needed to conclude its audit for FY24".
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