Wood Group (john) Takeover Rumours (WG.)

Takeover at a pound and Gilmarton out will do for me at this stage

While management is confident about annual profit, news that Deloitte is carrying out an independent review of the business is a big red flag for investors.Positives: Pursuing energy transition contractsSubject to a previous takeover attempt Negatives:Deloitte accounting reviewUnderlying customer investment can be volatile and uncertainThe average rating of stock market analysts:Buy

On the other hand if I was a company wanting to takeover WG I would want to know the size of the hole in the accounts that this probe is going to reveal otherwise its buying a pig in a poke. Look at PFC for a sad tale of one problem after another and also how WG bought a few pigs in pokes to get here.

Open to hostile takeover perhaps?

I'm pretty sure the key shareholders have called the company and have been getting some reassurance that everything is ticking along.Being short over the weekend could be dangerous with possible takeover interest

Takeover over of around £2.30 just a few months ago…SP now 53p, now what offer can we expect at significant discount?

After this, the board will never again be able to turn down a takeover approach. First buyer above a quid can have it

this looks like a buying opportunity. slipped down 10% over the last days. almost half the level the takeover was being discussed

John Wood Group has signed separate agreements for the sale of two businesses which together are expected to generate net proceeds of around US$165m this year. The FTSE 250-listed firm, which recently saw a takeover bid from a Saudi Arabian firm withdrawn due to market conditions, said it is selling its stake in Ethos Energy and CEC Controls. Combined the two businesses contributed US$41m to Wood's adjusted EBITDA in 2023. Wood expects net cash proceeds of around US$125m from the disposals, with the balance in loan notes of up to US$42m. Wood Group shares added 2.3% by around 9am. From Investegate link .

Panmure Liberum analyst Ashley Kelty says: "The end of the takeover interest from Sidara – due to market conditions, rather than any underlying issues with WG – removes a distraction from mgmt. and should allow the business to refocus on the longer-term strategy and on winning new business. "Disposals streamline the business further although some losses were crystalised on legacy contracts. The rise in margins is an encouraging step forward, but rise in net debt is a concern despite claims of savings being realised under strategy implementation. "The overall recovery is taking longer than mgmt. expected – having to deal with multiple takeover approaches has obviously knocked business off track – but investors will hope that the company can now focus on delivery."

Silly amount of debt on the books, falling oil price, market wobbles, takeover was never going to go through. It amazes me why cash rich companies in a volatile industry stretch themselves to eek out small gains in relative terms. Be slow and steady,save for the rainy day. Don't overstretch. I wouldn't be a buyer till the oil trend turns, probably not this year. If you lost today I feel for you, long term lesson though, don't get greedy, bank a profit.

The deadline does put pressure on the buyer because it can only be extended if the company (and the Takeover Panel) agree to an extension.

Dex…they could, but I think Sidara are primarily buying Wood for its US business. Wood are fairly well diversified geographically and in non-O&G work, so you could argue that any loss of O&G work would be replaced by an increase in decommissioning work and non-O&G work. So it may not have a material impact in the long run, but I think the market just marked down any company associated with UK O&G, rather than marking Wood down based on the success, or otherwise, of the takeover. Hopefully all will be clear within the next two days.

....and why would that affect the takeover? Do you believe the buyers could reduce their offer as a result ?

The fall off the cliff towards the end of the day doesn't bode well for the takeover.

Willie & Wendsworth The takeover code is very clear and the panel stick to it rigidly. See SVT about 10 years ago when a US (i think) acquirer didn't realise final meant final, the deal failed. The panel simply won't allow acquirers to make fake final offers read the RNS, they are quoting the code, they will have to abide by it. I don't think i've ever seen (b) happen in 20 years of trading *Pursuant to Rule 2.5(a)(ii) of the Code, Sidara confirms that the possible offer price of 230 pence per share is final and will not be increased, except that Sidara reserves the right to increase the amount of the offer price if: (a) there is an announcement on or after the date of this announcement of an offer or a possible offer (including a partial offer) for Wood by a third party offeror or potential offeror (including where the announcement of any such offer or possible offer is made by Wood); or (b) the Takeover Panel otherwise provides its consent.

If they've withdrawn their takeover approach I would've thought we would know by now. They are still looking at the books and or negotiating, so either an extension called for or the takeover deal announced at 7am tomorrow. AIMHO

Ali…it’s 3rd July…see below. In accordance with Rule 2.6(c) of the Code, the Board has requested and the Panel on Takeovers and Mergers (the "Takeover Panel") has consented to an extension to the date by which Sidara 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 3 July 2024. This deadline can be further extended by the Board of Wood, with the consent of the Takeover Panel.

dex: Negotiating tactics. From sector knowledge/ experience, Sidara know full well the potential in rationalisation following the takeover of WG. Word is, 'Sidara aren't walking away in the face of an uplift of 4.34per cent in their so called final offer'. Also gives the BOD a scrap of comfort? con: 17.00hrs on 3rd July.

When DX. was taken out last year, the SP was 15% discount to the takeover price almost right up to the point were it was formally agreed, this despite of the BoD in favour of the takeover.

3.5 hrs for Sidara to say something, the onus is on them... "Wood has not engaged with Sidara since Sidara made its first approach. Under the Takeover Code Sidara has until 5 June 2024 either to announce a firm intention to make an offer for Wood or to announce it has no intention to make an offer, unless this deadline is extended with the consent of Wood and the Takeover Panel. Sidara does not believe that its proposal can be progressed unless the Board of Wood engages with Sidara and an extension to the deadline is granted."

I still think it's unlikely to accept the 230p offer, if they only a few days earlier rejected 220p as it SIGNIFICANTLY undervalued the company, I don't see how an increase of little over 4% in new offer closes the expectation void, IMO. To row back in a week on much larger demands makes the board look a tad foolish. "Last week, Wood Group said it had rejected a third unsolicited £1.52bn or 220p a share takeover proposal from Sidara, as it continued to "significantly undervalue" the group and its prospects. This was up from two earlier proposals at 212p and 205p."

"Wood has not engaged with Sidara since Sidara made its first approach. Under the Takeover Code Sidara has until 5 June 2024 either to announce a firm intention to make an offer for Wood or to announce it has no intention to make an offer, unless this deadline is extended with the consent of Wood and the Takeover Panel. Sidara does not believe that its proposal can be progressed unless the Board of Wood engages with Sidara and an extension to the deadline is granted."

Petrofac is, if anything, a canary in the coal mine. All the more reason to grab the £2.30 ! I can't remember seeing a large takeover situation where the target company share price didn't go above 75% of the offer price. The market doesn't think it's going to happen....

Other interested parties. There aren't any. The Wood Group board have already demonstrated that they are hostile to any takeover that might adversely affect their personal terms and conditions.

CityAM JULY 2023..... 《《《 Wood’s latest results follow Apollo’s failed attempt to take over the company, which knocked back five bids from the private equity firm. In May, Apollo ruled out making a sixth bid for Wood, after several months of pursuing a takeover of the business – including a final offer of 240p per share on April 4 – a 20 per cent premium on its trading price that day 》》》 Their 5th bid was £2.40. They ruled out making a 6th bid. Why would they need to make a 6th bid if £2.40 was acceptable ? They got fed up with the Wood Management. Which is what will happen this time too.

I doubt that's the case. Sparta (for one), but probably others of the larger shareholders, will be indicating to the board what they think the board should accept in terms of takeover price. It would be very unlikely imo for the board not to be consulting the larger shareholders in this case imo. Otherwise the board risks the bidder sounding out the other shareholders first and then going hostile. All imo.

Gargoyle2 I don't pay too much attention to the individual RNS by institutions much nowadays. They are not easy to follow, sometimes the forms are not filled in correctly, and I even know that, at least on some of the small caps, responsibilities under the Takeover Code, for example, are abused and not policed. I know this for a fact. Additionally, trying to judge someone's total exposure is near impossible with derivatives and hedging. They truly are pointless. My description of typical behaviour comes from 30 years of personal experience and that of well-respected others. With the latest RNS from the company they are obviously still interested so my description of behaviour up to this point is most likely to be in the right ball-park although no one can be certain.

I think Apollo pulled out after loads of bids were rejected? So six one, half a dozen of the other really...but water under the bridge now :) "Wood’s latest results follow Apollo’s failed attempt to take over the company, which knocked back five bids from the private equity firm. In May, Apollo ruled out making a sixth bid for Wood, after several months of pursuing a takeover of the business – including a final offer of 240p per share on April 4 – a 20 per cent premium on its trading price that day"