Member Info for Hosai

Technically we don't 100% know Sidara/Wood are waiting for the deloitte report before takeover - it's just what the FT has said. The FT previously said they thought Sidara wanted to move quickly etc so haven't always been correct even if they've got the big things right.

The FT articles seem quite Sidara friendly as I've said before.

"The Deloittes tale is worse than expected or indeed claimed earlier. Has a cash impact and sizeable."

They already stated that 'the Review is continuing and Deloitte’s work and assessment will need to be complete before any conclusions can be reached. However, significant work has been undertaken and based on that: 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'

"The BOD are using this as a charade to give them time to come up with a plan - any plan."

In this scenario what would be the benefit of temporarily having a "fake" and temporary sp boost because of Sidara interest? This argument doesn't make sense.

Blackrock reduction was due to a transfer out but the shares went to L&G - Asset Management Limited who transferred in the 4,769,571 shares - https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=7364841&lang=en-GB&companycode=uk-wg&v=

"Another point worth raising is that WG is willing to sell off certain elements of the business to stay afloat, they were looking to raise another £250m this way. It may be the case that Sid are looking at elements of the business that interest them as an alternative to the entire business. WG may consider this as a way to re-size the business that enables them to retain their independence."

Both the FT articles and RNS' have been fairly clear - "for the entire issued and to be issued share capital of the Company."

That's how it is usually phrased Sharabel, this was how the 4th offer was phrased last summer - "it has received a fourth and final, unsolicited, preliminary and conditional proposal from Sidara for a cash offer of 230 pence per Wood share (the “Final Proposal”). - https://www.woodplc.com/news/latest-press-releases/2024/further-statement-re-possible-offer-3

Anyone find this slightly unusual wording? Would it normally be described as a deal to extend the deadline?

"Under UK takeover rules, Sidara faces a deadline of Monday afternoon to make a firm offer or walk away — unless Wood agrees to an extension. The two sides are close to a deal to extend the deadline, according to people familiar with the matter."

Just wonder if they are futher ahead in an agreement than is immediately obvious? Maybe Wood might have wanted someting like that if agreeing to extend again after Sidara walked following extension last time from the 230p deal?

"FT reports that any bid price will reflect the need to recapitalise the company...In other words it will not be a high bid as cost to stabilise Wood will be considerable".

It's just another way of saying Sidara have to take the debt into account. The debt and re-financing is clearly (arguably more than) priced into the current sp. Not that much has changed in regards to the debt and re-financing situation since Sidara offered 230p back in the Summer other than the uncertanty now around the review. This was put out there just imo as part of the general negative FT vibe perhaps to some degree on behalf of Sidara.

"Sidara’s approach that month sparked off a shortlived rally in Wood’s shares. That has since largely reversed, however, and expectations around price have been tempered by the drawn out discussions."

This part seemed fairly shoddy journalism. Up until Thursday close last week sp was 44p - near the top of the range since Sidaras' re-approach was announced. It only fell back on the Fri, with arguments potentially to be made that leaving the FTSE 250 and triple witching day could have had an impact on the fall.

Even going with 38.4p now however that is still above the mid 30s the sp was at when re-approach first announced.

As I said the FT articles seem Sidara friendly and they obv want Wood sp to stay low as possible during this period. A part of me even wonders if Sidara may have been concerned the extension news would push sp up and wanted FT to deliver the news in as gloomy a manner as possible.

As someone previously pointed out, whether relevant or not, Caroline Daniel who was 1 of the 2 partners at Brunswick Group that are at the bottom of the Sidara wood re-approach confirmation - https://sidaracollaborative.com/news/Wood-Statement-Feb2025

previously had experience in senior positions at the FT so would likely have contacts still there - https://www.brunswickgroup.com/caroline-daniel-i2704/

An extension increases the chance of either a takeover or rejected bid and decreases the chance of Sidara walking away without making a bid. Why would such knowledge cause shorts to "stack up?"

"Don't think the two BOD's are dancing to anything near the same tune."

They wouldn't be agreeing to an extension if couldn't see any prospect of a deal.

I think on first glance the article is a bit negative for wood. However when you consider that the uncertaties around the review etc are already quite heavily priced in I can't help but think the shorts may be a little rattled by the fact that sidara clearly are seriously interested in wood and that wood are engaging. At least they may be uncomfortable if they opened a short recently.

Arguably those risks are in the sp, the news of the review took the sp down from 125p, then the cash-flow change down from 65p.

"For the ones who sold out on expectations of extension were ridiculed with a FOMO behavior."

I don't get the argument of selling out due to expectation of extension though, I would regard that as a slight indicator of slightly more likely a deal or one of the two parties would not be interested in contiuing. Of course, there is still clearly uncertainty in the wait for review though.

The FT articles feel a bit Sidara friendly imo, they want to keep sentiment low in regards to wood fundamentals, will be interesting to see how Wood frame the RNS.

"Hopefully this clears some air on a lot of unnecessary speculations and dreams on this forum"

Which "dreams" are cleared away? I doubt many are surprised that they are conducting discussions at a far lower price than 230p. This article does confirm that Wood are engaging with Sidara.

Anyone have access? - https://www.ft.com/content/498d2d6c-4301-4444-9ce3-b327ad9f3733

Maybe but the annoucement of the review caused the sp to fall from 125p or so. Seems like "having ones cake and eating it" to wait for all the risks to go and then still try and buy it cheap if review is relatively not so bad. Deloitte seem to have confirmed the cash position is not affected.

There is also no certainty as to when the review will be finished which Sidara would have known when they re-approcahed.

"Hope I’m wrong but I’m now tending to think a point I made a few days ago .. Ken has said if it’s not over £1.50 then don’t bother .. hence no news and the time just ticking down".

Technically this would actually be bullish though (though you'd hope wood would find a way to get this across in the rns that they wouldn't sell for less than £1.50 rather than just make it sound like Sidara weren't interested).

Clearly if Wood refuse to sell under £1.50 then it would mean they weren't particularly worried about any of the things such as review or financing etc which brought the share down from £1.25 last year.

#Dave

Have you are a little bi polar, I belive you temp sold your shares on Thurs saying didn't want to wait anymore, then bought back, now saying what if offer is £2.50! I believe if a deal it would be somewhere between £1 and £1.15. A balance between the recent sp low again where the sp has been on average the last year.

It would go against the FT article that broke the story which I believe said - "But the board’s preference was to sell the entire company, two people familiar with the talks said, putting Sidara in pole position."