Wood Group rejects Sidara's third takeover bid citing undervaluation of company

The board of Aberdeen-based Wood Group has firmly rejected a third takeover bid from Sidara.

The fresh cash proposal of 220p per share for Wood marks a modest 3.8% increase over the previous offer of 212p, tabled on 14 May, itself a 3.4% rise from the initial 205p bid made on 30 April, reports the Insider.

In a statement to the stock exchange this morning, it was detailed that the offer had been "carefully considered."

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This was against the backdrop of the board's belief in Wood's intrinsic value and future potential, leading to the conclusion that it "continued to significantly undervalue the group and its prospects".

Dar Al-Handasah Consultants Shair and Partners are now under pressure to declare a definitive intention to make an offer for Wood by no later than 5 June.

Recalling last year's events, private equity titan Apollo made an overture to acquire Wood at a valuation of £1.68bn, or 240p per share, but ultimately withdrew from the negotiations.