Vox Markets Logo

Wood Group rejects second takeover proposal from Sidara, shares tumble

15:16, 15th May 2024
Vox News
Company News
TwitterFacebookLinkedIn

Wood Group tumbled on Wednesday after saying it had rejected a second, improved £1.5bn takeover proposal from Dubai-based engineering and consulting company Sidara.
The second proposal of 212p a share in cash was up from an initial offer of 205p a share and was received on 14 May.

"The board carefully considered the latest proposal, together with its financial advisers, and concluded that it continued to fundamentally undervalue Wood and its future prospects," the company said. "Accordingly, the board unanimously rejected the latest proposal on 15 May 2024."

The engineering firm said there can be no certainty either that an offer will be made or as to the terms on which any offer might be made.

Under takeover rules, Sidara has until 1700 BST on 5 June to either announce a firm intention to make an offer for Wood Group or walk away.

Last May, US private equity firm Apollo Global pulled plans to make a takeover offer for Wood Group after making five cash bids for the company - the last in April at 240p a share - all of which were rejected.

At 1540 BST, the shares were down 6.1% at 188.37p.

Stock Chart | WG.
TwitterFacebookLinkedIn

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Recent Articles
Watchlist