The UK oil services company confirmed that Sidara made an unsolicited offer on 30 April 2024 to acquire the company at 205p per share but had unanimously rejected the offer after carefully consulting its financial advisers
Wood rejects Sidara’s £1.4bn takeover offer. (Credit: Grant Durr on Unsplash)
The British oil services company John Wood Group has rejected a £1.4bn takeover offer from a Dubai-based rival Sidara, stating the offer fundamentally undervalued the company.
Aberdeen-based Wood confirmed that Sidara made an unsolicited offer to acquire the company at 205p per share on 30 Aril 2024 but had unanimously rejected the offer.
After carefully consulting its financial advisers about the offer, Wood’s board concluded that it undervalued the company and unanimously rejected the proposal.
Wood Group, in its statement, said: “The board carefully considered the proposal, together with its financial advisers, and concluded that it fundamentally undervalued Wood and its future prospects.
“There can be no certainty that any offer will be made for the company, nor as to the terms of any such offer, should one be made.
“Under Rule 2.6(a) of the Code, Sidara must, by not later than 5.00 p.m. on 5 June 2024, either announce a firm intention to make an offer for Wood in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.”
Last year, US-based private equity firm Apollo Global Management withdrew its offer to purchase Wood at 240 pence per share after several attempts without citing any reasons.
Activist investor Sparta Capital Management suggested the UK company undertake a strategic review of the business and seek alternative solutions to address its lagging share price.
Sparta founder Franck Tuil said: “If the UK public markets are unwilling or unable to engage in Wood’s story, we believe you should undertake a strategic review and actively seek alternative solutions.
“Time to recognise that the next chapter of Wood’s journey could be best supported by different owners and explore the best way to maximise shareholder value, including a sale of the company.”