Wood Group (john) Share Discussion Threads

[sspurt] 17/3/2023 09:15

Agree that it looks like WG management now engaging in the process. Not as optimistic as to take out level as some on here but think todays announcement raises the chance of a successful bid being concluded.

[hamhamham1] 17/3/2023 08:08

Yep, I hope for something like 280-300p.
Depends on how keen buyer is, but WG wording certainly says make a good offer and let's see.

[saltaire111] 17/3/2023 07:56

Looks like there’s a will to get a deal done.

[hamhamham1] 17/3/2023 07:42

Offer gotta be 250-260p at least???

Up 20% day again poss.

[hamhamham1] 17/3/2023 07:41

17 March 2023

Extension of PUSU deadline

John Wood Group PLC ("Wood" or the "Group")

On 7 March 2023, the Board of Wood announced that it had received a fourth unsolicited, preliminary and conditional proposal (the "Latest Proposal") from Apollo Global Management, Inc. ("Apollo"), regarding a possible cash offer to acquire the entire issued and to be issued ordinary share capital of Wood, that it believed the Latest Proposal continued to undervalue the Group and that it was therefore minded to reject.

Following engagement with shareholders and to allow for the scheduled release of Wood's FY22 results on 28 March 2023, in accordance with Rule 2.6(c) of the Code, the Board of Wood has requested and the Panel on Takeovers and Mergers (the "Takeover Panel") has consented to, an extension from the existing date of 22 March 2023 by which Apollo is required either to announce a firm intention to make an offer for Wood in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. Such announcement must now be made by not later than 5.00pm on 19 April 2023. This deadline can be further extended by the Board of Wood, with the consent of the Takeover Panel.

There can be no certainty either that an offer will be made nor as to the terms on which any offer might be made.

As announced on 12 January 2023, results for FY22 are in line with expectations.

The person responsible for arranging the release of this announcement on behalf of Wood is Martin McIntyre, Group General Counsel and Company Secretary.

[ayl30] 17/3/2023 07:39

So why the delay given that Wood have already confirmed their results and presumably the so called bidder will have been able to do due diligence?

[boozey] 17/3/2023 07:27

The wording of this morning's announcement is key. It seems like the largest shareholders want a deal to be done. On a balanced risk reward basis the 202p closing price last night now feels like a real bargain.

[brucethegoldfish] 17/3/2023 07:11

Gargoyle2 - I agree, especially in light of the announcement this morning for an approved extension by the Takeover Panel until 19 April for the Apollo discussions.

I’m hopeful though (although possibly more wishful thinking!) that a final deal could be done in the 270-280p range. I still think this undervalues Wood based on mid-term prospects, but could be viewed as fair at this stage for both sides.

[gargoyle2] 16/3/2023 17:51

I think (am hopeful that) Apollo still will bid. 237 won't be the final offer imo and the Board's use of the term 'minded to reject' was meant to suggest they weren't far off. A rounder number (245 or 250) should win it imo. Still a steal for Apollo at that price. All speculation obviously.

[ayl30] 16/3/2023 16:58

More worrying for holders that they might decide not to bid!

[dexdringle] 16/3/2023 16:47

Isn't it a bit embarrassing for the board that the market values their shares less than Apollo do ?

[chutes01] 16/3/2023 15:26

next leg up coming

[pogue] 15/3/2023 17:02

Watched Bank of Dave few weeks back I liked it bit sugary though on the love interest. Not sure its the way forward though the governments needs to raise money by issuing bonds and banks and others have to buy them for their capital reserves and what happens to low yield safe bonds when rates go up? They go down in value and take down the capital reserves in the bank that is why some of the American banks are suffering. Same has happened in the UK pension industry to poor sods with managed pensions they have been herded into bonds as a safe place as they near retirement age only to find their pots down by a large amount, 20% in the last year I have read, and they are forced to buy an annuity with a lot less than they expected and now face retirement with a lot less income. No solution to this mess central banks and compliant governments have got us into just got to await the end game to play out and see how we are going to get screwed.

[wendsworth] 15/3/2023 16:28

pogue:I thought that. Switching to the banking debacle have you seen 'Bank of Dave'?
Great film. Reckon that format could eventually be the remedy?!

[pogue] 15/3/2023 16:13

Anything in oil is getting whacked. Look at the small oilers some bargains going there for the brave.

[wendsworth] 15/3/2023 16:07

pogue : FTSE down another 240 i.e. some 3.2%. WG down 4.45%. Is the latter a reflection of the former? I note HBR is currently down 9.5% , Shell down 7.2% and BP down 6.8%.

[pogue] 15/3/2023 12:10

All the big contractors are changing what they do and how they do it and closing business that doesn't fit with their strategy. Fixed price contracts are out and renewables are in is the general main themes.
I was at a contractor couple of years ago that refused to take an extension offered by the client to continue being the onsite contractor for a gas field as it did not suit the type of work they wanted to focus on. Madness as it was easy money but there you go that's how the industry is changing, it is in general much more risk averse.

[wendsworth] 15/3/2023 10:26

brucethegoldfish: Probably part of the on-going rationalisation and turnaround of the company's fortunes. Interesting times beckon for shareholders.

[brucethegoldfish] 14/3/2023 19:57

Wood Group announced earlier today the sale of its offshore labour supply operations in the Gulf of Mexico to Louisiana-based energy services contractor, Danos.

The sale was for cash consideration of $17 million, an EV/EBITDA multiple of around 8x, including working capital.

Wood's offshore labour supply operations in the Gulf of Mexico contributed around $90 million of revenue and around $3.5 million of adjusted EBITDA in 2022. It employs around 700 people.

I wonder what, if any, bearing this deal possibly has on ongoing discussions with Apollo?

[wendsworth] 14/3/2023 16:10

Quiet BB awaiting....!After expected share price re-trace looks like 'it wants to go back up'? This month could well prove pivotal. Finals will require careful consideration.

[pogue] 10/3/2023 09:13

If you want some positive news from the coal face the rates are going up for engineers as the number of jobs are increasing. Most, if not all, of the work is large FEEDs for gas or LNG projects around the world. FEEDs lead to detailed design and they will be big contracts judging by the length of the FEEDs.
Aberdeen is still dead from what I can see and will remain so for a few years due to the government's windfall tax and the bigger one Labour have promised when they get elected. Pretty soon there will be no one stupid enough to work in the banana republic run most expensive oil sector in the world that will do wonders for the UKs treasury receipts, not.
Bad trip to the office today.

[wendsworth] 09/3/2023 19:47

pogue: Thank you for your thoughtful succinct response based upon your wealth of experience in the sector. As ever it will nonetheless be interesting to see how things pan out. I am particularly interested in The Finals due on 28/03.

[pogue] 09/3/2023 17:15

wendsworth
only point I would agree with you on is WG is undervalued.
Shell BP etc dont care if WG goes to someone else if there is a new owner it makes no difference to them just like WG buying FWEL. Plenty of contractors out there if for some reason the new owners decided to ruin the business which I don't think they would.
There is zero chance of WG being weaved into BP or Shell they have their own internal engineering divisions and it is more cost effective to have outside contractors compete for work and supervised by their engineers.
I talk from having worked in the contracting industry for all my working life.

[wendsworth] 09/3/2023 16:37

Boozey : Perfectly sensible approach. Where I would beg to differ is on your downside estimate going forward. WG is way undervalued. It is an important Scottish company that provides key support to the Oil and Gas industry. My view is that neither Shell or BP would wish WG to fall into the hands of ruthless asset strippers. Weaving WG into either would be extremely beneficial and in effect cost either of them 'chicken feed'. It is for that reason that I have doubled my holding this week. For the record WG is the only share I hold.

[hamhamham1] 09/3/2023 14:32

Its only polite to say no twice ;)