Wood extends Sidara buyout talks once again

UK consulting and engineering firm Wood has granted another extension for Dar Al-Handasah Consultants Shair and Partners Holdings, commonly known as Sidara, to finalize its acquisition offer. Sidara’s non-binding proposal suggests a cash offer of 35 pence per Wood share, valuing the deal at approximately £242 million ($328 million). This acquisition would also involve Sidara assuming Wood’s outstanding debt of around $1.1 billion and injecting an additional $450 million into the company.

Negotiations and Financial Audits

The negotiations between Wood and Sidara have been ongoing since March, with the initial deadline set for April 17. However, Sidara cannot make a formal offer until Wood publishes its audited financial accounts for the fiscal year ending December 31, 2024. Due to the ongoing audit process, Wood has extended the negotiation deadline multiple times. The latest extension requires Sidara to either submit a firm offer or withdraw from the deal by 5 PM British time on June 30. If the audited financials are not released by that date, further extensions may be granted.

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Wood’s board has indicated that it would recommend shareholders accept Sidara’s offer if it materializes. The proposed acquisition is significant, not only for the financial implications but also for the future direction of Wood as it navigates its current financial landscape. The outcome of this negotiation could reshape the company’s operations and strategic focus moving forward.