Shares of Wood Group (OTCPK:WDGJF) (OTCPK:WDGJY) skyrocketed 30.5% in London trading on Monday following confirmation that the company had received a takeover proposal from UAE-based engineering and consulting firm Sidara.
Sidara Revives Buyout Talks Following Wood Group’s Stock Collapse
According to reports from the Financial Times, Sidara has reinitiated discussions about acquiring Wood Group after previously abandoning a £1.6B buyout bid in August 2023. The UAE firm had initially walked away from the deal due to concerns over rising geopolitical risks and financial market uncertainty.
The fresh bid comes amid a sharp decline in Wood Group’s market valuation, which recently fell below £200M following a 60% drop in share price. The dramatic slump has raised questions about corporate governance and the company’s heavy debt burden.
Sidara’s Urgency to Retain Key Talent
One of the primary drivers behind Sidara’s renewed interest is the growing unrest among senior and mid-level employees at Wood Group. The company’s financial struggles and the controversial decision to cut employee bonuses have reportedly caused significant dissatisfaction among staff.
UK Takeover Deadline Approaches
Under UK takeover regulations, Sidara has until March 24 to either submit a formal offer or withdraw from the negotiations. With Wood Group’s stock experiencing a sharp rebound, investors and analysts are closely monitoring whether Sidara will follow through with a definitive acquisition bid.
As the deadline looms, market watchers anticipate further developments that could shape the future of Wood Group and its potential acquisition by Sidara.
