Wood Group buy back set at 605p - 625p

Oilfield services group Wood Group is to return £1.05bn to shareholders by way of a tender offer to repurchase up to 173.6m Wood shares, equivalent to 32.1% of the issued ordinary share capital of the group. The company flagged its intention to shower shareholders with cash back in February after it agreed to sell its Well Support division to US giant GE for $2.8bn cash.Shareholders wishing to sell their shares back to Wood Group may do so by choosing a sale price of between 605p and 625p inclusive. The strike price range represents a discount of 6.1% to 3.0% to the closing price of Wood shares on 13 May, the last trading day before the announcement of the tender offer.Closing time and date for the tender offer is 3:00pm on 1 June. Once all the tenders are in, a strike price will be set and qualifying shares will have their shares repurchased.Should the strike price be set at the lowest point of the range then shareholders have a guaranteed entitlement in respect of up to 32.1% (roughly) of their Wood shares."Following the return of cash, our balance sheet will continue to provide a strong platform for growth," said Allister Langlands, chief executive of Wood Group. ---jh