Shares in Aberdeen company Wood are up more than 5% following its rebuttal of a third takeover proposal, worth £1.52 billion, from a Middle East suitor.
Each unit of Wood stock was worth 189.2p at today’s market close.
Wood provides consultancy, project management and other services in 60 countries.
It is one of the north-east’s biggest employers.
The London-listed firm is being courted by Lebanese company Dar Al-Handasah Consultants Shair and Partners.
Middle East firm ups the stakes
Dar has just upped its game with a third proposal worth nearly 4% more than its second approach – worth £2.12 per share – on May 14.
An initial approach on April 30 was worth £2.05 per share.
Updating the City on Dar’s latest “unsolicited, preliminary and conditional” takeover proposal, worth £2.20 per unit of stock, Wood said: “The board, together with its financial advisers, carefully considered the third proposal, in particular, in the context of the board’s view of the fundamental prospects of Wood, and concluded that it continued to significantly undervalue the group and its prospects.
“Accordingly, the board unanimously rejected the third proposal on May 23.”
The FTSE250 company added: “There can be no certainty either that an offer will be made or as to the terms on which any offer might be made. Further announcements will be made as appropriate.”
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.
Global giant Wood employs about 4,500 people in its home city
Wood’s global headcount totals more than 35,000 people, including about 4,500 in Aberdeen.
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.
Wood was the target of one of the largest private-equity businesses in the world last year.
But the long-running pursuit by Apollo Global Management, which proposed a final deal worth £2.40 per share, fizzled out.
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.
Who’s the firm trying to buy Wood?
Beirut-headquartered Dar describes itself as “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”.
Current work for the group includes project management, design review, and construction supervision services for “multiple packages” involved in the planned expansion and modernisation of King Abdulaziz International Airport in Saudi Arabia.
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