Where now for Wood investors as Aberdeen firm rejects third offer from Dubai suitor Sidara?

Wood has pointed to “significant potential” as its order book builds and it pushes ahead with its simplification programme.

As it faces a second takeover attempt in as many years, there will be a feeling of deja vu for investors in Wood, the Aberdeen-headquartered energy and engineering services heavyweight.

The group has spurned a third, higher offer from Dubai-based engineering and consulting firm Sidara. The latest offer was almost 4 per cent more than a second approach of 212p proposed on May 14, Wood said in a statement. Sidara initially offered 205p a share at the end of April, valuing the Scots group at some £1.4 billion.

In response to the latest approach, 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.”

Wood, the Aberdeen-headquartered FTSE-250 energy and engineering services group, employs some 35,000 people globally and is involved in a wide range of projects.

In accordance with stock market takeover rules, Sidara has until June 5 to either make a firm offer or walk away.

Any takeover is likely to see a stock market delisting of Wood and could have a major impact on its global workforce of 35,000 people, which includes thousands of workers in the UK. The Sidara approach comes after US private equity suitor Apollo Management dropped its proposed takeover of Wood last May. Apollo had put forward a series of bid proposals, with the last one for 240p a share in cash, valuing the Scots group at almost £1.7bn. Its shares have had a rocky ride since.

Earlier this month, Wood – headed by chief executive Ken Gilmartin since 2022 – pointed to “significant potential” as its order book builds and it pushes ahead with a “simplification programme” that has seen it restructure the business and focus on core growth areas. Its trading update revealed that adjusted underlying earnings were up 4 per cent, with margin expansion across all of its business units offsetting lower revenue. First-quarter revenue came in at just over $1.35bn (£1.08bn), down 6 per cent, with growth in the operations side offset by lower revenue in projects. The order book stood at $6.2bn, as of the end of March, up 9 per cent on a year earlier.