Wood Group willing to accept lower Sidara offer

(Sharecast News) - Wood Group has announced that it would be willing to accept a reduced takeover offer from Dubai-based Sidari, but has extended the deadline for talks by another three days. Sidari first approached the oilfield services group in April but, after a series of extensions under 'put up or shut up' UK takeover rules, had until 25 August to make a firm offer or walk away.

Having now completed its due diligence on Wood, and discussed details about a proposed refinancing of the UK-listed firm, Sidara said that any offer would now be at a reduced price of 30p per share, valuing the company at around £209m.

That represents a 14% drop in the offer from the original 35p-a-share price tag discussed.

"The Board has evaluated the Reduced Possible Offer with its financial advisers and concluded that it is at a value that the Board would be minded to recommend to Wood shareholders, should a firm intention to make an offer pursuant to Rule 2.7 of the Code be announced on such financial terms, subject to the agreement of all other terms and conditions of an offer," Wood said in a statement.

The company has extended the PUSU deadline for Sidara to 1700 on 28 August, though this could be extended again with the consent of the Takeover Panel.