Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Started: HappyInvestor100, 18 Jun 2024 15:05
Last post: Aucuba, 20 Jun 2024 10:15
It's only people's opinions - and mine is the deal is not done until both parties say it's done.
If it is, then why to wait until 3rd of July :(
Yep agreed….deal done
I expect an announcement shortly.
I have no inside info. Just my view.
All IMHO DYOR
Happy
Started: RealityBytes, 18 Jun 2024 11:36
Last post: RealityBytes, 18 Jun 2024 11:36
What are the thoughts?
Would this get a boost or a higher offer if PFC went pop?
Started: Auguste, 6 Jun 2024 08:19
Last post: Gruyere, 13 Jun 2024 10:17
Personally I don't expect a bidding war to emerge. The Board have in effect accepted the offer of 230p - so long as Sidara don't try and amend the terms after seeing the books. It is troubling that shorts are still open and that there are apparantly institutional sellers - but its seems a reasonable punt. I have been holding a while and am still underwater but added to 10,000 and mulling whether to up that a little.
I guess I was wrong when I said it will be 216 today.
I am thinking that through engaging with the bidders they are hoisting the for sale flag - hence others e.g aecom may step forward . Wood group has a great team just now icorporating what was Amec fosterwheeler who them selves bought other businesses over the years.
Taverham. Just my view. From reading different press articles and speaking to my stockbroker.
B1nky, interesting percentages - but what are they based on? It certainly has 3 possible outcomes .
Started: ripley94, 28 Aug 2023 14:25
Last post: ripley94, 11 Jun 2024 20:28
now 200p.
going to be a loser for me bep 350p.
better then my last look in augast last year when 156p, when ************* recommended buying them .
wood group – “to engage with sidara” to seek a firm offer, further share price upside potential?
wood group (wg.) has announced that “having now weighed all relevant factors including, in particular, feedback received from wood shareholders, the board has decided to engage with sidara to determine if a firm offer can be made on the same financial terms as the final proposal”. that proposal was at 230p per share.
Splendid
The Apollo pulled bid was 17 April 2023 to 15th May 2023.
Now 156p
However, Midas highlights that Wood Group could still be undervalued, currently trading at less than nine times forward earnings for 2024. It cites comments from Investec, which said that if the stock was trading in line with the sector average valuation ratio, the shares would stand at 245p.
Started: CHELMOCHASER, 11 Jun 2024 09:51
Last post: Aucuba, 11 Jun 2024 10:48
I suspect they are selling because they know something we don't. Definitely doesn't feel as if the market thinks the deal is going to go to completion and not so sure another bidder will appear
I cannot believe certain institutional investors are selling sub £2.
WG have finally opened the books to Sidara due to the 230 approach and I would now expect a deal to be consummated
Other interested parties must now be watching this situation very closely and I for one feel Worley could be a name in the frame-in this case I would expect a take out price if at least 250/60.
I’m happy to be accumulating stock at these levels as for me this is the end game it’s now just down to the exit price imo
Started: Elllltelinv, 8 Jun 2024 07:56
Last post: Villideas, 10 Jun 2024 08:13
One would hope that the bid isn’t reliant on a Tory win. The politics is a fair point though. I wonder if bidders might want to try and grab UK companies before the shutters come down, which I’m sure they will - despite Labour’s business friendly protestations.
My concern for the oil and gas sector when Labour win.
The debate last night reminded us that new licences will not be granted. The future business of Wood may not be directly and immediately impacted but nevertheless any bid conclusion could be delayed until after July GE. Price me might wander south.
Started: Auguste, 6 Jun 2024 16:35
Last post: Gruyere, 7 Jun 2024 15:58
Tav - I'm hoping the same and have added on Wednesady and a further 4000 shares yesterday. It sound like the major players are happy to take 230p and have twisted the Boards arms into releasing the materials. Its all a case of what the bidder sees in there that they didn't already know. If no nasty surprises then it'll go through.
Bought another £3k this am in expectations that the bid will go through or another bidder rocks up - we shall see.
The following is taken from today's online investors chronicle:
Wood Group in bid talks
After rejecting potential buyer Sidara three times, Wood Group (WG.) will enter talks over a 230p per share offer after shareholder lobbying. The energy services and engineering company has extended a put-up or shut-up deadline to 3 July, announcing the shift just before the previous deadline on Wednesday afternoon. This marks a turnaround from the Wood board, which had previously rejected Sidara’s approaches without engagement. Wood’s shares climbed 10 per cent on the news, to 204p.
The company said: “The board remains confident in Wood's strategic direction and its fundamental prospects. However, having now weighed all relevant factors including, in particular, feedback received from Wood shareholders, the board has decided to engage with Sidara to determine if a firm offer can be made on the same financial terms as the final proposal.”
Wood will now open its books to the fellow engineering and consulting group.
The 230p offer is still below the Apollo bid of 240p from last year, but is a 52 per cent premium to the price before Sidara started lobbing proposals last month. Sidara labelled the fourth offer as final last week, although reserved the right to increase it if another bidder were to enter the fray. AH
Started: Elllltelinv, 6 Jun 2024 08:07
Last post: Elllltelinv, 6 Jun 2024 08:07
Bidding war possible.
Could be 260p
Started: MaryBr190, 5 Jun 2024 09:24
Last post: SeaHorse27, 5 Jun 2024 20:27
Guess this time will be a deal. My logic is Sidara guys are professional, they must/had to know why Apollo walked away last time before they place an offer. WG is getting better in the past year plus Sidara bid a lower price and WG BOD want to engage, the price must be reasonable. Crossed finger, hope Apollo reconsider the case and come back, then Mary's 260 is most likely.
220in morning
Well it was certainly sweaty to hold after Fridays poor close, but we got there in the end.😉
No chance of buying in sub £2 in the morning?
Guess I was spot with my on earlier - there will be another scramble in the morning and many may exit if it approaches 230p although I see sweetening of the offer as the Board talk up their prospects.
Agreed at 260p is the answer the Institutions are looking to exit.
Started: Elllltelinv, 5 Jun 2024 16:15
Last post: rhinocol, 5 Jun 2024 17:32
What makes you post 260 Mary. ??
For "Apollo's previous 249p" please read 240p of course, fat finger syndrome. But I hope you liked my Woodshed joke!
I understand that the 230p offer is actually worth more than Apollo's previous 249p offer due to changes in WG's financial podition. During 'due diligence ' I hope Sidara doesn't see something nasty in the "Wood Shed"!
Don't see what has changed to make Apollo come back into play although the general market may be better for them now. Depends what made then walk away last time I suppose
Boom takeovers talks happening finally could lead to previous bidder coming back
Started: Normanbar, 5 Jun 2024 16:58
Last post: Normanbar, 5 Jun 2024 16:58
In accordance with Rule 2.6(c) of the Code, the Board has requested and the Panel on Takeovers and Mergers (the "Takeover Panel") has consented to an extension to the date by which Sidara is required either to announce a firm intention to make an offer for Wood in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. Such announcement must now be made by not later than 5.00pm on 3 July 2024. This deadline can be further extended by the Board of Wood, with the consent of the Takeover Panel
Started: Bingobongo, 5 Jun 2024 16:03
Last post: Bingobongo, 5 Jun 2024 16:03
Moving up
Started: Elllltelinv, 5 Jun 2024 15:33
Last post: Elllltelinv, 5 Jun 2024 15:33
25% upside
Started: Elllltelinv, 5 Jun 2024 15:14
Last post: Elllltelinv, 5 Jun 2024 15:30
A number of forms appearing as RNSs suggests takeover is likely.
So I reckon it will go
You could be right - but I've added 2300 taking a punt it just might this time. Should say that I don't have a great track record on this kind of thing!
Don’t think it will sell.
WG seem to be running a very tight ship nowadays.
Nothing has leaked if they will enter talks with Sidara or not.
I find it difficult to believe that they would chose not to atleast extent the 5th June deadline and open constrictive discussions.
I tried to edit it, didnt have an option. Ignore the comment.
Buyer
You really do post some weird comments . What part of the company are Sidara not offering to buy?
If you are ready for longer term, go for it.
If The Bod are going to reject, I do not see the point of saying it on the last day -
Since Sidara said 2.3 is the last offer. Keep in mind that Sidara isnt buying the whole company, and if they do, that will help the business grow.
There will be others if this falls through. If it drips to 150p then I will buy more
Looks like it’s going to go to the wire, the Board might be discussing wit largest shareholders as the Board are clearly not in favour and this may swing depending on how the major shareholders feel. We might get an announcement right on deadline day.
Started: MaryBr190, 31 May 2024 16:31
Last post: rhinocol, 2 Jun 2024 18:22
Me thinks with such a big drop is there some insider dealing going on ??
The forthcoming labour government may swing the vote to accept.
In my opinion co cant afford to reject this offer. Though fingers crossed for smbd on the sidelines to step in and trigger bidding war. Gla
Some big buys at 182 before close - I’m hoping we would have heard today if a refusal…
Odd drop
Started: Auguste, 30 May 2024 17:19
Last post: Grapeboy, 2 Jun 2024 17:29
I would be extremely surprised if they accepted this bid with hopefully much better trading results coming through in the next year. The problem I am continually frustrated with is how some companies get away with such open ended statements about forecasted future profits and margins. Who will buy the shares on the back of their Q1 statement that 2025 will see significant free cash flow. What is significant. Phrases like high single digit margins are too loose as well. Is 7% high or even 6% in their world . The BOD should come out and make some real forecasts like many other companies do.
The bod hasn't been able to get the share price close to the previous £2.40 offer price despite saying that the previous bid and this, the most recent bid undervalues wood group. I think, the bod will accept this bid.
Started: Lochnagary, 2 Jun 2024 08:54
Last post: Lochnagary, 2 Jun 2024 08:54
“Edinburgh-based fund manager Aberforth Partners, one of the largest investors in small UK quoted companies, recently sent a letter to dozens of chairmen warning against accepting underpriced deals, according to City sources.”
Last post: Hindhead, 30 May 2024 22:13
#hmm yes but have a look at Ken Gilmartins buying history. Over the last 2 years he has bought in excess of 1,000,000 shares, averaging an sp of abut £1.50. If WG goes at £2.4 he’s had a good day at the office. He’s backed his own abilities and good for him and fortune favours the brave, and hopefully all WG holders.
AIMHO DYOR
Indeed the Board should act in the interests of shareholders but I suspect, with the average SP over the last 10 years being in excess of £4, most long term shareholders are under water at £2.30 and would not consider a sale at such a depressed level to be in their best interests.
Sure if you’ve bought in recently and looking for a quick turn then you want a deal and move on.
Wood, along with plenty of other quality names, got caught with too much debt when covid/war/inflation hit us but interest rates will soon be falling and sentiment will change. It’s clear from the amount of bids around at the moment that predators are trying to get some bargains before it’s too late.
£2.30 is way too cheap and everybody knows it.
Agreed. I have to say that as a BoD is obliged to act in the interests of its shreholders I wonder why a premium of over 20% to the current sp is not adequate reason for agreeing to the takeover. I guess they can always argue that they will, in time, deliver better returns, but I know which outcome I'd prefer....
The share opening still shows uncertainty. I feel like BOD got no other choice s:(
Anyone else thinking the BoD are being pressured into considering this by fed up institutions. End game now?
Started: John33, 29 May 2024 15:10
Last post: ArthurAscii, 30 May 2024 16:30
There is significant downside risk! If Sidara walks away (they lose credibility making yet another marginally higher offer), and no other bidder emerges (both more likely than not imo), we'll be back down to 140, at least for a while. Rather you than me, buying at 185!
Knowing how Dubai companies operate, I have just bought at 185p on the assessment that this will reach 250p by the end of the year. Very little downside risk in my opinion.
Could it be the board are being pressured into accepting near enough 230p by ii's. The mere fact they are evaluating means 230p is close to the price they will now accept, in my opinion.
"This will soar down 1.25",...An oxymoron if ever I heard one.
Started: MaryBr190, 29 May 2024 13:56
Last post: Lochnagary, 29 May 2024 14:33
I’m surprised the share price is still languishing in the mid-180s. I guess this means the market thinks the bid will not succeed at 230p. I think the BOD will be under pressure from their big shareholders to engage and get the deal done. I hope they do.
Sidara just trying to push Wood into engagement but this is not going to do it in my opinion.
Share price will now drop away as the deal will be believed as done.
The outcome could be higher.
If Wood didn’t stop handing out Dividend, I would have never considered selling the shares
Started: hodgy2108, 24 May 2024 08:16
Last post: Discus1, 27 May 2024 21:48
To be honest been lazy following the TR1s - and perhaps this has been mentioned here before. However todays TR1 gained my attention - HSBC - Name of the party to the offer with which exempt principal trader is connected: OFFEROR: Dar Al-Handasah Consultants Shair and Partners Holdings Ltd
FYI the link - Who is Sidara engineering & consulting? Founded in 1956 as Dar Al-Handasah, Sidara as it is now known, is a family-owned engineering and consulting firm with a presence in more than 60 countries
So I looked back -
And we have multiple dealings under the same broker and offeror. I wonder how many shares they already hold to off set their current offer bringing down their average should a deal be done? I’m hoping they are serious.
The bid price will have to be around£ 2.90 to 3 for any chance to be successful.
Mr P…I think Apollo walked away because the timing of their proposed 240p offer and due-diligence coincided with the banking crisis in America during the Spring of 2023. Remember some of the regional banks needed to be bailed out / rescued…SVB etc. Apollo proposed a cash offer, and it is likely that Apollo would need to borrow that money. Apollo probably thought it was not the right time to borrow $1.6 billion, when the American banking system was in crisis. It’s possible that they found something during their due-diligence that they didn’t like, but I think this would have known by now (in the annual report) if it I had been a material issue.
WG
That's not what the current share price is say saying Hodgy2108. We still don't know why Apollo walked away after being invited to look at the books. If it does go for 230p I will smile as I give them my last 1,000 shares but I won't put back the £16,000 if it falls back on a lapsed bid. If two people walk away that says something to me, I don't have full confidence in the current team. Beware of CEOs with shoulder length hair!
2.30 bid on way 4% increase and deal done
Started: Lochnagary, 24 May 2024 20:27
Last post: Troajan, 25 May 2024 22:08
Mail article
https://www.thisismoney.co.uk/money/markets/article-13457329/Wood-Group-says-no-takeover-City-fightback.html?ico=mol_desktop_money-newtab_toast_new_money&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.196091884.1512424726.1716671195-829466088.1679172563&_gl=1*1di8b1k*_ga*ODI5NDY2MDg4LjE2NzkxNzI1NjM.*_ga_XE0XLFFF16*MTcxNjY3MTE5NC45NS4xLjE3MTY2NzExOTYuMC4wLjA.*_ga_GQE6MT7DLZ*MTcxNjY3MTE5NS42LjEuMTcxNjY3MTE5Ni4wLjAuMA..
Https://www.thetimes.co.uk/article/4e23bf50-f30f-417c-a4e7-810fad889ae0?shareToken=76313f92ed3a414d1815579102b2c788
The Times says that analysts say the latest Sidara bid is equivalent to Apollo’s 240p on an enterprise value basis, because the company’s debt has increased since last year.