Wood Receives Takeover Proposal from Sidara
UK consulting and engineering firm Wood has received a non-binding conditional takeover proposal from Dubai-based company Sidara. The possible offer is for 35 pence per Wood share in cash to acquire the entire issued and to be issued share capital of Wood. Sidara also plans to inject $450m into the UK company, with $250m to be provided upon approval of the offer and the remaining $200m upon completion.
In late February, Sidara restarted talks with Wood regarding a takeover after four failed attempts. The final offer was 230 pence per Wood share, valuing the company at around £1.58bn ($2bn). The new offer is worth approximately £242m ($320m) and includes taking on Wood’s outstanding debt of around $1.1bn, which the company is looking to refinance.
Wood is exploring various refinancing options for its long-term capital structure but believes the offer from Sidara is the better option for its shareholders, creditors, and stakeholders. The Wood board has indicated that it would recommend the offer to shareholders if a firm offer is made.
Sidara has made significant progress with its due diligence on Wood and is committed to fulfilling all antitrust and regulatory conditions for the offer. The conditions include the publishing of Wood’s 2024 financial results, legally binding agreements on debt modifications, and approvals from both companies’ boards.
Combining with Sidara would create a leading global engineering consulting company with enhanced scale, capability, and diversification, offering opportunities across a global network of brands for employees of both companies.