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UK-listed engineering firm Wood Group has given UAE-based Sidara more time to put forward a binding takeover bid, even as the suitor has trimmed its offer price after completing due diligence, it said in a statement. The new offer would see Sidara pay GBP 0.30 a share, valuing the firm at GBP 207.6 mn (USD 280.5 mn), Reuters reports. The reduced price is still a premium to Wood’s last closing price of GBP 0.18 per share.
ALSO- Wood reached an agreement with Sidara and its lenders on the terms of refinancing its maturing debt facilities.
Wood still wants Sidara: Wood’s board said it would still recommend the lowered bid to shareholders once Sidara submits a formal offer and both sides agree on the final terms of the acquisition.
Background: Sidara had originally said in April that it would pay GBP 0.35 a share for Wood, valuing the firm at USD 318.4 mn. The offer also included a USD 450 mn debt package. It marked a sharp drop from earlier proposals that valued the firm at GBP 1.6 bn before financial governance issues surfaced.
The clock runs out tomorrow: The UK Takeover Panel extended Sidara’s “put up or shut up” deadline to Thursday, 28 August, giving it until tomorrow to announce a firm offer or walk away.
ICYMI- Wood has been the subject of an on-again, off-again takeover bid from Dubai-based Sidara for over a year. After initially scrapping the bid, it returned to talks later and extended the deadline to submit a formal bid several times, with the latest extension giving them until 28 July. Talks have stretched on as the Financial Conduct Authority (FCA) launched a probe into Wood’s accounts, forcing the firm to restate its 2022 and 2023 financials, leading to a temporary suspension of its shares and weighing on its valuation.
OTHER M&A NEWS-
Menzies Aviation completes G2 Secure Staff acquisition: Menzies Aviation, a subsidiary of ADX-listed logistics firm Agility Global, closed the acquisition of 100% of US-based G2 Secure Staff, according to a disclosure (pdf). The transaction wrapped at an enterprise value of USD 305 mn, plus a deferred USD 10 mn payment due in 2026 subject to performance. The acquisition was first announced in April.
Looking ahead: The transaction will add roughly 20% to Menzies’ revenue, bringing group revenues above USD 3.1 bn based on FY 2024 figures. G2’s operations will be rebranded under the Menzies name, with integration already underway.
