Wood Group Knocks Back Sweetened $1.93 Billion Bid from Sidara
The Scottish energy-services provider said the offer of 220 pence a share significantly undervalues the company and its growth prospects
John Wood Group WG 5.17%increase; green up pointing triangle rejected an improved 1.52 billion-pound ($1.93 billion) takeover bid from Sidara, following two prior proposals by the Dubai group.
The Scottish energy-services provider said Friday that the offer of 220 pence a share significantly undervalues the company and its growth prospects.
The bid, which represents a 3.8% increase on the prior offer, was rejected on Thursday. It followed a GBP1.47 billion approach made public May 15. The initial bid, disclosed May 8, valued Wood Group at GBP1.42 billion.
Sidara has until June 5 to either make a formal offer for Wood Group or walk away under U.K. takeover rules.
The interest comes about a year after Apollo Global Management walked away from a possible takeover of Wood Group, offering 240 pence a share.
Sidara, formerly known as Dar Group, is owned by Dar Al-Handasah Consultants Shair and partners.