Wood Group requests third extension to Sidara takeover deadline as talks continue

(Sharecast News) - Wood Group has requested another extension to the takeover deadline, giving Sidara an extra month to either announce a firm intention to make an offer or walk away. The so-called 'put up or shut up' deadline, which now stands at 28 July, has already been extended two times since Sidara's initial proposal was made public in mid-April. The current deadline was due to expire on Monday.

"The board of Wood is continuing to work with Sidara in relation to the pre-conditions to the possible offer set out in that announcement," the oilfield engineering and consulting company said in a statement.

Earlier this month, media reports suggested that Wood wanted the proposed £242m takeover done before the end of June, when a waiver of its debt covenants is scheduled to expire.

The 35p-per-share offer is just a fraction of the 230p price tag proposed by Sidari in May 2024, before revelations about corporate governance and questionable financial results tanked the stock.

Wood said on Monday that the two sides are "engag[ing] constructively" with Wood's lenders and noteholders in relation to debt modifications and Sidara liquidity arrangements. Meanwhile, Wood is still working with its auditor regarding the publication of its financial results for 2024.

"There continues to be no certainty that an offer will be made by Sidara even if the pre-conditions to the Possible Offer are satisfied or waived. This announcement is being made with the consent of Sidara," Wood said.

The company as of last week is currently under investigation by the Financial Conduct Authority regarding the period from 1 January 2023 to 7 November 2024.