Last checked at 
(Alliance News) - John Wood Group PLC on Monday said its remains confident in its "strategic direction and fundamental prospects", after a potential bidder for the oil field services firm withdrew.
Dar Al-Handasah Consultants Shair & Partners Holdings Ltd, known as Sidara, said it does not intend to make a firm offer for the Aberdeen, Scotland-based John Wood. Sidara had been given multiple extensions by the UK Takeover Panel to the put-up-or-shut-up deadline to give a firm intention to make an offer, the latest deadline was this coming Friday.
Back in June, John Wood received a fourth possible takeover proposal from Sidara, worth 230 pence per share. Sidara has steadily increased its bid proposal after making an initial approach worth 205p per share, which John Wood disclosed in early May.
John Wood shares were down 39% to 120.45p early Monday in London, giving the company a market capitalisation of GBP890.8 million. The stock is now down 25% over the past 12 months, entirely reversing a more than 65% rally between the start of April and the end of July.
Sidara blamed "rising geopolitical risks and financial market uncertainty" for its ultimate decision to not make a takeover offer.
Tensions in the Middle East ratcheted higher over this past weekend.
A senior official said the US is ready for "every possibility" amid fears of war between Iran and Israel, while telling the Israelis it is "urgent" to reach a ceasefire deal in Gaza. The US remarks came after Iran and its regional allies vowed retaliation for the killings of a Hamas leader in Tehran and a Hezbollah commander in Beirut, fuelling fears of a broader Middle East conflict.
In response to Sidara's announcement, John Wood reconfirmed the outlook for the rest of 2024 and for 2025 that it had provided in a trading outlook last month. John Wood had report growth in earnings, margins and its order book in the first half of the year. It will release its full interim results on August 20.
"As we look ahead, we remain focused on delivering our potential, including generating significant free cash flow next year," the company said on Monday.
By Tom Waite, Alliance News editor
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
