Latest News

Wood Group in the UK receives conditional bid by Sidara for $450 million cash

Wood Group announced on Monday that Dubai's Sidara had made a conditional offer for the British oilfield engineering and services firm. The proposal included 35 pence per share and an injection of up to $450 million in cash.

Wood Group resumed discussions with Sidara in February, after the company had repeatedly rejected its approaches. Sidara had withdrawn their acquisition plans due to increased geopolitical risk and uncertainty on financial markets last year.

Sidara’s latest offer values Wood Group at approximately 242 million pounds. This comes just before the deadline of April 17, when the Dubai-based engineering firm and consulting company was required to submit a formal bid.

If such an offer were made, the British company would "be inclined to recommend" it to its shareholders.

Wood Group projected that in February, after a turbulent period -- marked by problems within its Projects division, activist investors' pressure to pursue a sell, failed takeover efforts, and a strategic review -- it would experience another year of negative operating cash flow.

Wood Group announced on Monday it is seeking to extend its debt facility and Sidara has made "significant progress" in its due diligence.

(source: Reuters)