Wood Group tanks as Sidara walks away

Wood Group said at the end of May that it was evaluating a fourth and final "unsolicited, preliminary and conditional" takeover proposal from Sidara at 230p a share.

Sidara originally had until 5 June to either announce a firm intention to make an offer or walk away, but the ‘put up or shut up’ deadline was pushed back to 9 August.

At 1545 BST, Wood Group shares were down 36% at 125.30p.

Wood Group said in a brief statement: "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."

Danni Hewson, head of financial analysis at AJ Bell, said: "The Dubai company had been wooing John Wood for months, with three offers failing to win over the board of the Scottish company.

"But a couple of extensions later Sidara is walking away. The global outlook has shifted, market volatility has gripped investor sentiment and Sidara might well be breathing a sigh of relief that the lengthy courtship ended as it did, when it did.

"Companies are battening down the hatches as they consider the state of the world and prepare to ride out the potential storm."