London, August 05, 2024, (Oilandgaspress) ––On 29 May 2024 Dar Al-Handasah Consultants Shair and Partners Holdings Ltd (“Sidara”) announced that it had submitted to the Board of Wood a fourth proposal to acquire the entire issued and to be issued ordinary share capital of Wood at a final price of 230p per share in cash (the “Final Proposal”).
After having weighed all relevant factors, particularly feedback received from Wood shareholders, the Board announced on 5 June 2024 that it had decided to engage with Sidara to see if a firm offer could be made on the same financial terms as the Final Proposal and, accordingly, granted Sidara access to due diligence materials.
Following an extended period of detailed engagement, Sidara confirmed to Wood on 2 August 2024 that it had completed its due diligence.
The Board was notified by Sidara this morning that it does not intend to make an offer for Wood in light of rising geopolitical risks and financial market uncertainty. As a result, Sidara is bound by the restrictions set out in Rule 2.8 of the City Code on Takeovers and Mergers (the “Code”).
The Board remains confident in Wood’s strategic direction and fundamental prospects. As set out in the HY24 trading update on 11 July, the growth strategy continues to deliver, with further growth in EBITDA, margins and order book in the first half. As we look ahead, we remain focused on delivering our potential, including generating significant free cash flow next year. We are pleased to reconfirm our outlooks for both this year and 2025.
The Board is grateful for the substantial engagement of its shareholders and the support of its clients and employees throughout this process. The management team looks forward to continuing to deliver against the strategy set out in November 2022.
Shares in Wood Group (WG.) reportedly slumped by over 38% to 122.3p on Monday after Sidara terminated takeover talks, the suitor citing ‘rising geopolitical risks and financial market uncertainty’ for its decision not to make a firm offer. Wood had rejected Sidara’s previous buyout attempts on valuation grounds and the Dubai-based engineering and consulting firm had until Friday 9 August to make a firm offer or walk away for at least six months.
Sidara is a global planning, design, engineering and project management group founded in 1956 with revenues of $2.8bn and extensive operations in the US, EMEA and Asia. Sidara is a privately-owned working partnership with no external shareholders.
