Wood Group recommends takeover offer from Sidara after year-long pursuit

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U.K. engineering company John Wood Group (OTCPK:WDGJF [https://seekingalpha.com/symbol/WDGJF]) (OTCPK:WDGJY [https://seekingalpha.com/symbol/WDGJY]) has recommended [https://www.ft.com/content/b9b5f604-6de0-4cd5-9b9c-5ae4193cfd6a] its shareholders accept a reduced offer of 30 pence/share, or £216M (~$291M), from United Arab Emirates-based Sidara, the _Financial Times_ reported Friday, ending a pursuit that spanned more than a year and included multiple offers and rejections.

Sidara said it will inject $250M in cash as soon as shareholders approve the deal and another $200M upon completion in 2026.

Wood (OTCPK:WDGJF [https://seekingalpha.com/symbol/WDGJF]) (OTCPK:WDGJY [https://seekingalpha.com/symbol/WDGJY]) said it had run out of ways of refinancing its $1.6B of debt, and that "any alternative refinancing option would likely generate materially less, and potentially zero, value" for its shareholders.

The deal requires Wood (OTCPK:WDGJF [https://seekingalpha.com/symbol/WDGJF]) (OTCPK:WDGJY [https://seekingalpha.com/symbol/WDGJY]) to publish its audited accounts for 2024 and for its debtholders to agree to extend their loans; the company's shares have been suspended since April, but KPMG has not yet completed its audit.

Sidara made a 35 pence/share non-binding conditional approach in April [https://seekingalpha.com/news/4430927-sidara-bids-242m-for-wood-group-after-offering-1_5b-last-year], but the U.K.'s Financial Conduct Authority said in June it had started an investigation into the company for allegedly withholding information from its auditors.

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