Shares in Aberdeen firm Wood rose more than 3% today after it edged closer to a potential takeover, worth nearly £1.6 billion, by a Middle East suitor.
Wood said it was now willing to discuss a fourth and final proposal from Lebanese group Dar Al-Handasah Consultants Shair and Partners, which is also known as Sidara.
The Granite City-headquartered project management and consultancy services giant also revealed the “Takeover Panel” had agreed to extend a “put up or shut up” deadline.
Sidara now has until July 3 to make firm bid for Wood or quit its pursuit
Sidara had been given until 5pm today to either announce a firm intention to make an offer – or walk away.
But the Panel on Takeovers and Mergers, which regulates takeover bids and merger deals in the UK, has agreed to an extension of the deadline to 5pm on Wednesday July 3.
Sidara’s initial approach on April 30 was worth £2.05 per share.
It followed that up on May 14 with a proposal worth £2.12 per share.
Then, on May 24, it said it was willing to pay £2.20 for each unit of stock.
The Middle East firm upped the stakes on May 29, proposing £2.3o per share.
This is 44p higher than Wood’s current share price of £1.86 and values the whole business at £1.59bn.
Wood says it wants to ‘engage’
Updating the market earlier today, the FTSE 250 firm said: “The board remains confident in Wood’s strategic direction and its fundamental prospects.
“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.”
The company added: “There can be no certainty that an offer will be made. Further announcements will be made as appropriate.”
Wood is one of the north-east’s biggest employers. Its global headcount totals more than 35,000 people, including about 4,500 in Aberdeen.
Earlier this year the company revealed pre-tax losses from continuing operations totalled £49.6 million during 2023, compared with losses of about £547m in 2022.
Revenue was 8.7% higher in the latest period, at £4.67bn.
Recruitment drive
The firm also said it was recruiting for 200 new jobs in Aberdeen and 500 UK-wide.
And at the start of this month it announced plans to create 40 new roles in a Granite City-led project to help French energy giant TotalEnergies reduce its carbon footprint.
Beirut-headquartered Sidara describes itself as “one of the world’s leading consultancies providing design, planning, engineering, sustainability consulting, digital solutions and services, and project management for buildings, cities, transportation, civil infrastructure, water and the environment”.
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