Sidara sends final Wood takeover offer worth $2bn

UK consulting and engineering firm Wood has received a fourth and final bid from Dubai-based company Sidara for the takeover of the company.

Less than a week ago, the UK firm rejected Sidara’s third bid as the offer was seen as ‘significantly’ undervaluing the company.

The unsolicited, preliminary, and conditional proposal from Dar Al-Handasah Consultants Shair and Partners, also known as Sidara, for 220 pence ($2.79) per share was sent to Wood on May 21.

It was an improvement on the second offer by around 3.8%  and an increase of around 3.4% to the first proposal of 205 pence per share submitted on April 30. The board unanimously rejected the third proposal on May 23.

Under the condition of the third offer, Sidara had to either announce a firm intention to make an offer for Wood by June 5 or back out.

On Wednesday, Wood received a fourth and final offer from Sidara for a cash offer of 230 pence per Wood share. It values the company at around £1.58bn ($2bn). This is a 52% premium on Wood’s closing share price on April 29, a day before Sidara made its first offer.

“The board, together with its financial advisers, is evaluating the final proposal and a further announcement will be made in due course,” Wood explained.

The June 5 deadline for a formal offer applies to the final offer as well as per the UK takeover code.