Wood Group to 'engage' with Sidara on takeover proposal

Wood Group said late on Wednesday that it had decided to "engage" with Sidara after the Dubai-based engineering and consulting firm made an improved and final takeover proposal last week at 230p a share.

"The board remains confident in Wood's strategic direction and its fundamental prospects," it said.

"However, having now weighed all relevant factors including, in particular, feedback received from Wood shareholders, the board has decided to engage with Sidara to determine if a firm offer can be made on the same financial terms as the final proposal. Accordingly, the board will grant Sidara access to due diligence materials."

Wood Group announced last week that Sidara had upped its proposal to 230p, after it rejected a third unsolicited £1.52bn or 220p a share proposal, as it still significantly undervalued the group and its prospects. This was up from two earlier proposals at 212p and 205p.

The final offer is a 52% premium to the closing Wood Group share price on 29 April, which was the last day before Sidara’s initial proposal.

Wood Group said on Wednesday that it had asked for an extension to the ‘put up or shup up’ deadline, meaning that Sidara now has until 3 July to either announce a firm intention to make an offer or walk away.

"There can be no certainty that an offer will be made. Further announcements will be made as appropriate," it added.