John Wood Group rejects the third takeover bid from Dubai-based Sidara
- 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, better known as Sidara.
The FTSE 250-listed industrial engineering group told investors on Friday that Sidara’s latest offer of 220p per share still “significantly undervalues” the company and its prospects.
In mid-May it turned down a second bid from Sidara worth 212p per share, or £1.5 billion, after rejecting a £1.4 billion bid earlier this month.
Wood Group says Sidara’s third bid still undervalues the oilfield services company
Wood Group shares were up 3 per cent to 185.4p by mid-afternoon, having risen more than 30 per cent in the past year.
The company said: ‘The board, together with its financial advisors, carefully considered the third proposal, particularly in the context of the board’s view of Wood’s fundamental prospects, and concluded that it would benefit the group and continued to significantly undervalue its prospects. .
“Therefore, the board unanimously rejected the third proposal on May 23, 2024.”
Wood Group’s profit margins grew in the first three months of 2024, while revenue fell 6 percent.
To strengthen its defenses against takeover predators, Wood is currently restructuring to save up to £48 million a year from 2025, after cutting around 200 jobs.
Wood is the latest London-listed company to be watched by foreign predators, attracted by the perceived undervaluation of London-listed shares.
Parcel company DS Smith, carrier Wincanton and housebuilder Redrow have all agreed to a takeover this year.
Sidara now has until 5pm on June 5 to make another bid for Wood or walk away, although this deadline could be extended.