Wood Group has moved a step closer to a long-awaited takeover deal, after bidder Sidara confirmed it intends to proceed with an offer – albeit at a reduced price.
The Aberdeen-headquartered energy services giant revealed this morning that Sidara, having completed due diligence, now plans to table a bid worth 30p per share in cash. That marks a drop from the 35p initially proposed in April.
Despite the reduction, Wood’s board said it has reviewed the terms with advisers and would be minded to recommend the new offer to shareholders, should a firm bid be announced.
The endorsement signals that both sides are edging towards agreement after months of negotiations.
Key pre-conditions have already been met, including alignment with Wood’s lenders on a refinancing package and the completion of Sidara’s due diligence. The company is also progressing work with auditors on its delayed 2024 accounts – another milestone in the process.
The Takeover Panel has extended Sidara’s deadline, giving the bidder until 5pm on Thursday to either announce a firm intention to make an offer or walk away. Further extensions remain possible with Panel consent.
Wood stressed that there remains no certainty a final deal will be struck, but the latest update makes clear that substantive progress has been achieved and that Sidara remains committed to pursuing the acquisition.
The potential sale of Wood, one of the region’s most high-profile listed companies, has been closely watched across the energy sector – with today’s development suggesting that, after months of uncertainty, a takeover could now be imminent.