Takeover target: Oil industry engineer Wood Group rejected £1.4bn takeover offer from Dubai rival Sidara
Acquisition target Wood Group’s profit margins grew in the first quarter of 2024, even as revenue fell 6 percent, the oil industry engineer said.
The Aberdeen company updated the market on its performance just a day after revealing it had rejected a £1.4bn takeover bid from Dubai rival Sidara.
Wood is the latest London-listed company in the eye of foreign predators.
Strengthening its defenses yesterday, Wood said it is progressing a restructuring to save up to £48m a year from 2025, after cutting around 200 jobs.
Profit margins grew in the first three months of 2024, even as revenue fell 6 percent, the FTSE 250 firm said.
But City experts said “more could be done” as London’s stock market is mired in crisis and bidders seek out undervalued companies.
Packer DS Smith, haulier Wincanton and housebuilder Redrow have agreed to be bought out this year. Wood said Wednesday that Sidara’s offer “fundamentally undervalued” the company.
The shares rose 0.6 per cent, or 1.1 pence, to 194 pence yesterday, having risen almost 17 per cent in the previous session.
The bid came a year after private equity giant Apollo abandoned a £1.7bn bid.
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