Wood Group Sees Shares Rise After Confirming Sidara Takeover Offer
Houston, TX, USA – March 15, 2023 – Wood Group, a leading global provider of integrated operations, maintenance, and construction services to the energy industry, has seen its shares surge following the confirmation of a takeover offer from Sidara, a private investment firm.
In a statement issued yesterday, Wood Group revealed that its board of directors has unanimously recommended that shareholders accept the recommended cash offer of £9.50 per share, valuing the company at approximately $10.5 billion. The news has sparked a positive response among investors, with Wood Group’s shares rising by as much as 12% in early trading on the London Stock Exchange.
Under the terms of the deal, Sidara will acquire all outstanding shares of Wood Group for the cash consideration, providing significant returns for investors. The offer represents a 22% premium to the company’s closing price on March 10, the last trading day before the bid was made public.
The takeover is seen as a significant vote of confidence in Wood Group’s operations and strategy, which has been focused on expanding its presence in the global energy market. Sidara, a private investment firm with a reputation for investing in high-quality, mid-cap companies, has a proven track record of driving growth and improving performance through strategic focus and capital allocation.
The bid is expected to be completed by the summer, subject to regulatory approvals and shareholder approval. Wood Group’s management team is expected to remain in place, with Sidara’s ownership expected to bring additional resources and expertise to the business.
Analysts have welcomed the news, saying that the takeover will provide Wood Group with a welcome injection of capital and expertise, enabling the company to accelerate its growth strategy and expand its global presence. "This is a great outcome for Wood Group’s shareholders, who will benefit from a substantial premium to the current share price," said one analyst at a leading investment bank. "The company’s management team has done an excellent job of positioning Wood Group for growth, and Sidara’s investment will allow them to take the business to the next level."
The takeover is also expected to be a significant milestone for Sidara, which has been expanding its portfolio of investments in recent years. This deal marks one of the company’s largest and most significant acquisitions to date, demonstrating its ability to attract and invest in high-quality, mid-cap businesses.
As the deal is set to complete over the summer, investors will be watching with interest to see how Sidara plans to integrate Wood Group into its portfolio. In the meantime, the news has sent a positive signal to the market, with shares of other mid-cap energy companies also rising in response to the news.
