- His rival’s 220p continues to ‘significantly undervalue’ the industrial engineer
John Wood Group has rejected a third takeover bid from Dubai-based rival Dar Al-Handasah, known as Sidara.
The FTSE 250-listed industrial engineering group told investors on Friday that Sidara’s latest offer of 220 pence per share still “significantly undervalued” the company and its prospects.
In mid-May, it rejected a second offer from Sidara worth 212 pence per share, or £1.5bn, after rejecting a £1.4bn bid earlier in the month.
Wood Group says Sidara’s third bid still undervalues oilfield services company
Wood Group Shares They were up 3 per cent at 185.4p by mid-afternoon, having gained more than 30 per cent over the past year.
The firm said: “The board, together with its financial advisers, carefully considered the third proposal, in particular in the context of the board’s view of Wood’s fundamental prospects, and concluded that it continued to significantly undervalue the group and its prospects. .
“Accordingly, the board unanimously rejected the third proposal on May 23, 2024.”
Wood Group’s profit margins grew in the first three months of 2024, even as revenue fell 6 percent.
To bolster its defenses against takeover predators, Wood is restructuring to save up to £48m a year from 2025, after cutting around 200 jobs.
Wood is the latest London-listed company to be targeted by foreign predators, attracted by the perceived undervaluation of London-listed shares.
Packaging firm DS Smith, haulier Wincanton and housebuilder Redrow have agreed to be bought out this year.
Sidara now has until 5pm on June 5 to make another offer for Wood or withdraw, although this deadline may be extended.