Member Info for Dazpink

Sale of Built Environment business back in 2022

Agreement to sell Built Environment Consulting to WSP for gross proceeds of approximately $1.9 billion and a total enterprise value of $1.81 billion

Use of proceeds

The primary and immediate use of the net cash proceeds from the transaction will be a reduction in the Group’s net debt to strengthen our balance sheet and provide financial flexibility to deliver our strategy.

Where has the money gone if not to reduce the debt ?

Good post OrangeMoon, much better to read a decent post then most of the rubbish on here

Additional to the article on Ashtead, BlackRock is also spending on under valued companies. BlackRock own shares in WG, could we see them enter the takeover arena.

BlackRock, the world’s largest investor, has been buying billions of pounds of UK assets that it believes are “undervalued”.

Larry Fink, chairman and chief executive of BlackRock, has revealed that the fund manager has been building positions in UK assets “across the board” having been reassured by the early rhetoric from the government of Sir Keir Starmer.

“[We] have allocated more capital back to the UK tactically now with the belief that in the short run, the new administration is trying to tackle some of the hard issues,” he told The Times. “I think the prime minister is articulating the needs of what we have to do.”

He added that he was more confident about the investment prospects for the UK than this time last year, at the tail-end of Rishi Sunak’s administration. “I have more confidence in the UK economy today than I did a year ago.”

BlackRock runs $11.6 trillion of money on behalf of pension funds, retail clients and sovereign wealth funds and has about £570 billion of UK assets, including in shares, bonds and infrastructure such as Gatwick Airport.

Interesting article in the times today, you never know.

As oil and gas majors pivot away from renewables, the Aim-listed provider of subsea equipment for the offshore energy sector is hedging its bets

Oil and gas companies are abandoning their retreat from fossil fuels. Shell and BP have announced planned increases in oil and gas production, disregarding previous fossil fuel reduction targets.

In the short term a swift transition from fossil fuels to renewables appears less certain. Having exposure to both might therefore be a smart way to retain exposure to energy markets. Enter Ashtead Technology, an Aim-listed provider of subsea equipment for the offshore energy sector.

Ashtead supports companies in the installation, maintenance and decommissioning of subsea energy infrastructure across the world, renting out equipment and solving problems for energy companies. It has three service lines: survey and robotics, mechanical solutions, and asset integrity.

Ashtead earns most of its money from the oil and gas sector. Last year Ashtead generated £120.7 million in revenue from oil and gas, accounting for 72 per cent of its turnover, while it earned revenue of £47.3 million from the renewables sector. Revenues from oil and gas and offshore renewables rose by 58 per cent and 40 per cent respectively. Pre-tax profits increased by 31 per cent to £36.1 million.

Ashtead is an acquisition-hungry business. Its strategy is to buy oil and gas-focused companies that can be repositioned to operate in both the oil and gas and offshore wind markets.

In November 2024 the group completed the acquisition of Seatronics and J2 Subsea, two competitor sister companies that will boost its rental of survey and robotics equipment. The businesses have historically focused on oil and gas, but in line with the Ashtead strategy, can support the renewables sector too.

The acquisition was Ashtead’s ninth in seven years. While mergers and acquisitions contribute significantly to its revenue growth — Ashtead recorded inorganic revenue growth of 39 per cent last year — it also registered organic revenue growth of 14 per cent. Ashtead has tripled its revenue since listing in 2021 while maintaining its margins in the double digits.

Deals are not simply done for their own sake. “We do not anticipate M&A which simply increases company size or market share without adding something new to the company in terms of products or services,” say Panmure Liberum analysts.

The company and analysts are confident that Ashtead can maintain its M&A pipeline without harming its balance sheet. With Ashtead’s net debt having more than doubled to £128.4 million following the deal, it intends to slash its leverage from 1.6 times cash profits to a multiple of 1.3 by its 2025 year end. “We consider the potential for further M&A in 2025 high,” say Peel Hunt analysts.

Thanks jenashon, this is why it will not go into administration, the business is 75% solid, the project division that has major issues can be sorted during 2025.

The other divisions are doing very well which WG should be proud of.

There is clearly a manipulation going on which is painful to see.

I am holding too much to lose if I bale out now.

John Wood Group opened the door to Apollo in 2023, the board of directors has listened to Wood's investors, mainly big institutional funds, and decided it is in those shareholders' interests to open the books. Apollo gets to do its due diligence before deciding on a formal offer.

Apollo had a look and decided not for them at the price that WG thought it was valued at.

We may see another visit, fingers crossed. Reasons below why it wanted WG, has this changed ?if anything better value now.

Apollo Global Management's interest in acquiring John Wood Group stemmed from several factors, including potential market access, and the desire to capitalize on Wood's perceived undervaluation. Wood had been underperforming and its share price had been low for an extended period. Apollo also saw an opportunity to potentially streamline operations and focus on "reimbursable" contracts where the client bears more of the financial risk

It’s just a game being played, Sidara’s proposed offer of 35p will still be on the table as agreed by both parties.

Imho, give it a rest

Dr Hooman Haghighi is the Director of Decarbonisation Solutions, Digital Consulting at Wood. Wood is a global leader in consulting and engineering, working to design, optimise and decarbonise industrial assets across a range of markets

https://oeuk.org.uk/dr-hooman-haghighi-director-of-decarbonisation-solutions-digital-consulting-wood/

I agree Surin, but I do think that the trading update together with the year end results will demonstrate that the transformation of wood is continuing but requires assistance which will benefit all next year.

Lightnotheat

Feb trading update

The Company does not expect that the findings of the Review will have a material impact on the Group’s cash position or its ability to generate cash in the future

https://www.woodplc.com/news/latest-press-releases/2025/business-update

The offer of 35p is an insultingly low offer, let suspension happen, when results are released the share price will move quickly to 50p then Sidara can come back to the table to offer a more realistic price for WG. Having done all DD and knowing that the future looks good as contracts are bringing in big revenue Sidara want WG

Isn’t this just a loan from Sidara ? WG would have to pay it back to the holding company which would be Sidara

Per RNS, In order to support Wood in obtaining the Debt Modifications, Sidara intends (following announcement of any Offer) to provide a total of $450 million in new capital to Wood through one or more new committed debt instruments with a maturity co-terminus with the date to which the Wood RCF is extended (the “Sidara Liquidity Arrangements”).

The Sidara Liquidity Arrangements would be structured to enable the Company to draw in two tranches:

(a) an initial tranche of $250 million, the drawing of which would be conditional upon approval by Wood’s shareholders of the Offer (if such Offer were structured as a scheme of arrangement as is currently intended between the parties) or upon the expiry of 21 days after posting of the offer document (if such Offer were structured as a takeover offer); and

(b) a further tranche of $200 million, the availability of which would be conditional upon completion of the Offer.

Apollo wait be waiting for the right moment to come in

Give suspension 2 weeks max

The CEO and the board will remain silent until it is ready to disclose good news.

I am sure they will be currently discussions with other potential acquirers, exploring alternative deals that could be more beneficial to shareholders.

The board has a duty to act in good faith and with due care in what they believe to be the best interests of the corporation and its shareholder (Fiduciary Duty)

Please take into account two asset disposals that are in progress now $200m into the coffers

Also more then likely WG will continue assessing and potentially disposing of other non-strategic assets to improve its balance sheet and maximize shareholder value

AimMaster just reviewed your past 217 posts, all negative, wonder why that is ?

Bet Sidara will have to offer investors more the an 35p to close the deal. I don’t see them accepting it currently knowing that WG will be turned around before end of this year.

Wood Group will raise $200 million later this year through asset disposals (Ethos Energy Group Limited & CEC Controls Company Inc to offset negative cash flow and maintain debt levels which should calm things down.