Wood Receives Takeover Approach from Sidara

The UK-based engineering and consulting company Wood has recently been approached by architecture and engineering consultancy Dar Al-Handasah Consultants Shair and Partners Holdings (Sidara) regarding a potential takeover. This comes after a previous round of unsuccessful takeover talks between the two companies last year.

Wood confirmed the receipt of a preliminary approach for its entire issued and to be issued share capital from Sidara. However, since this is not a formal offer, Wood has advised its shareholders to refrain from taking any action regarding the proposal at this time.

Under applicable legislation, Sidara is required to announce a firm intention to make an offer for Wood or declare that it does not intend to make an offer by March 24, 2025.

Previous Takeover Talks

Last year, Sidara initiated takeover talks with Wood by offering 205 pence per Wood share on April 30, 2024. Despite subsequent increases in the offer price, with the final offer reaching 230 pence per Wood share on May 29, 2024, the initial proposals were rejected by Wood’s board for undervaluing the company and its future prospects.

After accepting the revised offer on June 5, 2024, Wood engaged with Sidara to explore the possibility of a firm offer. However, Sidara ultimately decided not to make an offer for Wood due to escalating geopolitical risks and financial market uncertainty.

Contract Extensions and Business Developments

Amidst the takeover discussions, Wood has also been focused on securing contract extensions and business opportunities. The company recently inked a deal with Shell to provide engineering, procurement, and construction (EPC) services for the Penguins floating production, storage, and offloading (FPSO) unit for an additional two years.