Wood Responds to Potential Takeover Bid from Dubai-Based Sidara

Recent media speculation has brought to light a potential takeover bid for UK consulting and engineering firm Wood by Dubai-based company Sidara. Wood has officially confirmed these reports and has advised its shareholders to refrain from taking any immediate action regarding the proposal.

As of now, there is no certainty as to whether Sidara will indeed make an offer, and the terms of any potential offer have not been disclosed by Wood.

Sidara, also known as Dar Al-Handasah Consultants Shair and Partners, is mandated to declare a firm intention to make an offer for Wood by March 24, failing which it must publicly state its decision not to proceed with an offer.

Notably, Sidara has already made four takeover bids for Wood, with the latest bid being described as “final” and offering 230 pence per share, valuing the company at approximately £1.58bn ($2bn).

The initial offer from Sidara was at 205 pence per share, followed by subsequent increases of 3.4% and 3.8% in the subsequent bids. However, Wood has rejected all four offers, asserting that they significantly undervalue the company and its future potential.

Prior to Sidara’s interest, US-listed private equity group Apollo had made five separate bids to acquire Wood, with the highest bid valuing the company at around $2.1bn. However, Apollo eventually withdrew from the acquisition process in May 2023.