- Firm has received four bids
- Final bid pitched at 230p
- Deadline for talks extended
The board of oil services and consulting firm Wood Group (WG.) last night published a statement saying while they were confident in the company’s strategic direction and its prospects they had decided to engage with bidder Sidara.
Wood Group shares jumped 19p or 10% to 205p, which is still some way short of Sidara’s cash offer of 230p per share.
FOURTH TIME LUCKY?
Sidara – or to give the firm its full title, Dar Al-Handasah Consultants Shair and Partners Holdings – made an initial approach to the UK firm on 30 April with an offer of 205p per share, and subsequently raised its offer twice in mid-May to 220p.
Its fourth and final offer of 230p per share was submitted on 29 May, representing a 52% premium to the closing price the day before it made its first approach.
At the time, Sidara said Wood Group had made no effort to engage with it at any point since its initial offer in late April and it had until the close of play on 5 June either to announce a firm offer or walk away – the so-called PUSU (put-up-or-shut-up) deadline.
Wood Group has now agreed to grant Sidara access to due diligence materials and extended the PUSU deadline, with the consent of Takeover Panel, to the close of play on 3 July, in the hope it can secure a firm offer of 230p.
M&A ON THE INCREASE
Wood Group is just the latest UK firm to receive a bid in what could turn out to be a banner year for M&A (mergers and acquisitions).
It is also heavily-exposed to the oil, gas and mining sectors, where large-scale consolidation is taking place – see ConocoPhillips (COP:NYSE) buying Marathon Oil (MRO:NYSE) and BHP’s (BHP) attempt to buy Anglo American (AAL) – meaning its customers are getting bigger, which in turn should mean larger contracts.
