Shares in Aberdeen’s largest company, Wood, surged nearly 17% after it confirmed it had received and rejected a £1.42 billion takeover proposal.
The London-listed engineering and consultancy services giant revealed it was being courted by Lebanese company Dar Al-Handasah Consultants Shair and Partners.
Wood’s shares were each worth 192.9p by the market close.
Who’s the suitor behind proposed takeover of Wood?
On its website, Beirut-headquartered Dar says it is “one of the world’s leading consultancies, providing design, planning, engineering, sustainability consulting, digital solutions and services, and project management for buildings, cities, transportation, civil infrastructure, water and the environment”.
Wood is one of the north-east’s biggest employers.
It employs more than 35,000 people globally, including about 4,500 in Aberdeen.
Aberdeen company says Dar’s proposal undervalues the business
Responding to media speculation, Wood said Dar’s takeover proposal, worth £2.05 per share, reached it on April 30.
The company added: “The board carefully considered the proposal, together with its financial advisers, and concluded that it fundamentally undervalued Wood and its future prospects.
“Accordingly, the board rejected the proposal unanimously on May 8 (today)”.
‘Put up or shut up’ deadline
Wood delivered the usual corporate-speak rider there is “no certainty that any offer will be made for the company, nor as to the terms of any such offer, should one be made.”
And it stressed that, under City “put up or shut up” rules, Dar has until 5pm on June 5 to either announce a firm intention to make an offer – or walk away.
Wood provides consultancy, project management and other services in 60 countries globally.
Earlier this year the company revealed pre-tax losses from continuing operations totalled £49.6 million during 2023, compared with losses of about £547m in 2022.
Revenue was 8.7% higher in the latest period, at £4.67bn.
The firm also said it was recruiting for 200 new jobs in Aberdeen and 500 UK-wide.
And at the start of this month it announced plans to create 40 new roles in a Granite City-led project to help French energy giant TotalEnergies reduce its carbon footprint.
Previous takeover move for Wood came to nothing
Wood was the target of one of the largest private-equity businesses in the world last year.
It came after a steep decline in the company’s share price.
But the long-running pursuit by Apollo Global Management, which proposed a deal worth £2.40 per share, eventually came to nothing.
There were fears of a large number of job losses if New York-based Apollo had gained control of the business, and decided to relocate or streamline its Aberdeen operation.
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