Wood Group turns down £1.4bn takeover bid from Sidara
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Aberdeen-based oil services company Wood Group has declined a £1.4 billion takeover offer from Dubai-based rival Sidara, citing the offer as “fundamentally undervalued”.
The London Stock Exchange-listed firm confirmed it received a proposal 30 April 2024 at a proposed offer price of 205 pence per Wood share.
A spokesperson for Wood Group said: “The board carefully considered the proposal, together with its financial advisers, and concluded that it fundamentally undervalued Wood and its future prospects. Accordingly, the board rejected the proposal unanimously on 8 May 2024.”
This rejection echoes a similar move last year when US private equity firm Apollo Global Management withdrew its bid of 240p per share for Wood Group.
The FTSE 250 company’s share price has dipped significantly from its pre-pandemic levels, currently standing at around 188p per share. Pressure mounts on Wood Group to revitalise its market valuation as activist investor Sparta Capital Management calls for a strategic review, hinting at potential sale options to maximise shareholder value.
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