The Wood Group takeover saga rolls on. The embattled group has yet to receive a firm offer from Sidara, and Wood Group shares remain suspended due to their failure to publish their annual accounts by the end of 2024.
Wood Group has secured an extension until 25 August for potential acquirer Sidara to make a firm takeover offer, following progress on crucial financing arrangements that underpin the proposed 35p per share deal.
Today’s release comes after the Financial Times reported that Sidara were considering lowering its offer price for Wood Group.
Wood’s board had previously indicated it would be minded to recommend the 35p cash offer to shareholders, subject to full terms and conditions.
In addition to the update on the takeover period, the engineering services company announced that commercial alignment has been reached on headline terms for refinancing its debt facilities, a key prerequisite for the takeover by Dar Al-Handasah Consultants (Sidara).
The proposed refinancing package includes extending Wood’s committed debt facilities to October 2028 and establishing new bonding facilities to meet operational requirements. These arrangements, combined with Wood’s existing facilities and an initial $250 million liquidity injection from Sidara, would benefit from comprehensive security guarantees.
Crucially, the refinancing would convert temporary covenant waivers—previously extended to 31 July—into permanent arrangements. However, not all lenders have engaged with the proposals, meaning Wood may need to implement changes through a Scottish scheme of arrangement, which requires approval from a majority of lenders representing 75% by value.
Should the Sidara offer fail to materialise, commercial terms have been agreed for a shorter-term stability arrangement that would provide Wood with a platform to develop alternative refinancing options.
Wood Group shares remain suspended, but the company said that it continues to work with its auditor on publishing its 2024 accounts, which are required for shares to resume trading.
Given the uncertainty around the Sidara takeover offer, it’s probably a good thing for shareholders that shares remain suspended.