Wood Group has this morning announced an update on its proposed takeover by Sidara, confirming there is now "commercial alignment on the headline terms of the proposed refinancing".
It was previously announced in April that Wood had received a holistic non-binding conditional proposal from Sidara including a possible offer of 35p in cash per Wood share to acquire the entire issued and to be issued share capital of the company.
In an announcement to shareholders this morning, Wood said: "The board of Wood is continuing to work with Sidara in relation to the pre-conditions to the Possible Offer set out in that announcement and is pleased to announce that there is now commercial alignment on the headline terms of the proposed refinancing in connection with the Possible Offer with Sidara and Wood's lenders."
With the latest update, Wood also confirmed the deadline for a firm offer to be made has again been extended, this time until 5pm on August 25.
The statement continued: "Wood and Sidara have been engaging constructively with Wood's lenders in relation to both the Debt Modifications and the Sidara Liquidity Arrangements.
"There is now commercial alignment on the headline terms of an extension to the company's existing committed debt facilities (the "Proposed Refinancing").
"If implemented, the Proposed Refinancing would be conditional upon Sidara making a firm offer for Wood, such offer being approved by the requisite majority of the Company's shareholders and receipt of the first tranche of the Sidara Liquidity Arrangements."
The update said the proposed refinancing is expected to involve:
- an extension of the company's committed debt facilities to October 2028; and
- entry into new committed bonding facilities to provide the company with significant bonding capacity to meet its operational bonding requirements.
It goes on: "These new facilities, together with Wood's existing committed facilities and the initial $250million tranche of the Sidara Liquidity Arrangements (as previously announced), would benefit from a comprehensive security and guarantee package.
"In addition, the Proposed Refinancing would convert the temporary waivers (initially valid through to 30 April 2025 and then extended to 31 July 2025 as announced on 1 July 2025) into permanent waivers. The company is in the process of negotiating with its lenders a further temporary extension which would apply pending implementation of the Proposed Refinancing."
At the beginning of May, Wood shares were suspended as the company failed to post its 2024 annual results on time. They were suspended at 18.44p per share.
Wood also announced this morning that Paul O'Donnell will join the firm as a non-executive director from today.
Paul has a Bachelor of Commerce degree from the National University of Ireland, Galway, and a Master of Accounting degree from University College Dublin.
Paul's appointment follows the decision by three directors not to stand for election or reelection at the 2025 Annual General Meeting, and the continued assessment of the size and composition of the Board, including the balance of skills, to ensure it meets Wood's requirements.
Roy Franklin, chair of Wood's board, said: "Paul brings significant board experience and has led a successful career helping companies navigate similar challenges to those Wood faces today. I am delighted to welcome him to the Board, he is a strong addition to our team and extends the range of skills and experience we have."