Energy services firm Wood Group has rejected a third bid from Dubai-based suitor Sidara today on the grounds it “significantly “undervalues the firm.
In a statement to the market, The Aberdeen-based FTSE 250 firm said it had rejected the latest bid from Sidara at 220p per share, a 3.8 per cent uplift on Sidara’s previous offer.
“The Board, together with its financial advisers, carefully considered the Third Proposal, in particular, in the context of the Board’s view of the fundamental prospects of Wood, and concluded that it continued to significantly undervalue the Group and its prospects,” Wood Group said.
“Accordingly, the Board unanimously rejected the Third Proposal on 23 May 2024.”
Sidara now has until 5th June to increase its offer for the firm or walk away.
Wood Group has been a top target in London’s take-private frenzy over the past year but has so far rebuffed all its approaches. Last May, private equity firm Apollo launched a five cash bids for the company, the last in April at 240p a share.
Wood Group said it would give it access to do its due diligence after rejecting the first four earlier proposals but Apollo chose to walk away.
Deals worth more than £26bn have now been waved through by boards sine January this year, with firms picked off at an average of 36 per cent above their value on the market, underscoring the valuation gap that has plagued London’s historic bourse in recent years.