Wood Group rejects second takeover proposal from Sidara, shares tumble

(Sharecast News) - Wood Group tumbled on Wednesday after saying it had rejected a second, improved £1.5bn takeover proposal from Dubai-based engineering and consulting company Sidara. The second proposal of 212p a share in cash was up from an initial offer of 205p a share and was received on 14 May.

"The board carefully considered the latest proposal, together with its financial advisers, and concluded that it continued to fundamentally undervalue Wood and its future prospects," the company said. "Accordingly, the board unanimously rejected the latest proposal on 15 May 2024."

The engineering firm said there can be no certainty either that an offer will be made or as to the terms on which any offer might be made.

Under takeover rules, Sidara has until 1700 BST on 5 June to either announce a firm intention to make an offer for Wood Group or walk away.

Last May, US private equity firm Apollo Global pulled plans to make a takeover offer for Wood Group after making five cash bids for the company - the last in April at 240p a share - all of which were rejected.

At 1540 BST, the shares were down 6.1% at 188.37p.