Member Info for JamesOxford

@Isle. You and I may have more in common than most here in terms of takeovers. Although I am from the 'banker' side of the equation. Lol

What many here do not understand is that Wood Group's CEO and BODs need to sell.

Everyone in the know 'knows' it (pardon the pun!).

Sidara does not NEED to buy a 'distressed' Wood Group. Nor does Sidara NEED to make a hostile takeover of Wood Group. Sidara can simply walk away, as it has done before.

Wood Group inempt CEO and BODs has created this dire situation through incompetence. At the moment, Sidara has offered Wood Group a 'lifeline' - albiet for a cheap price...but that is NOT Sidara's fault.

If Sidarra walks, the Wood Group share price will tank. Make no mistake about it - probably to the low to mid-teens. All confidence in Wood Group's CEO and BODs will evaporate, and untold pressure will be placed on them by their lenders. Wood Group's lenders have very little faith the Wood Group's senior management and/or their ability to 'trade' out of the mess they have created through their own mis-management of the company and its financials. The end will not be pretty.

Some here think Sidara should offer a high number. Why would they? However, the only way that can occur, is if another party enters the ball park, ready to play ball. And both bidders have to be keen, very keen in order to drive hike the price upwards. However, there is no other bidder, there will not be another bidder...there will be no 'knight in shining armor' riding in on his white horse to save the day. Sidara knows this. Wood Group know this.

Games will be played. For example, Sidara would have spoken to those 'in the know' at Wood Group, and mentioned that they were considering an opening offer of 65p (which would have been a large hike on the then Wood Group share price of 27p earlier today) in order to 'test' reactions at Wood Group and shake the Wood Group 'trees' a little). However, Sidara would have then followed that up with that they 'settled' at 75p. Of course, the dance must continue, so a couple of rounds of 'waltz' back and forth to settle at 85p to 95p. I would be very surprised if Sidara offered any more than 95p under their 'cash offer' basis. It would be more prudent of Sidara to simply walk away.

A Sidara offer of 85p to 95p needs to be considered very carefully by Wood Group's CEO and BODs in order to protect Wood Group's interests and those of its employees, stakeholders, partners and shareholders. An acceptance and an effective RNS statement that expresses confidence and a recommendation that the offer is in the best interest of Wood Group and its shareholders will wrap this up nicely for all.

My bet is that Sidara and Wood Group will conclude negotiations maybe as soon as the next 5 to 14 days max - and that Sidara will be the proud owner of Wood Group.

Wood Group will thrive under Sidara. No doubt about it.

IMO & DYO

@katstrangler 'I can't imagine BoD wanting to be rid of the company for any fraction of what they this its true value is, considering they rebuffed 230p.'

That was then. This is now.

Different ball game completely.

@EvolveiMS 'This can't be anything but 110p to 140p per share deal.'

I like your optimism. It would be nice for Wood Group shareholders if your wish came true.

Of course, it would not be so nice for Sidara. Lol

@kenj 'I seem to recall hearing much the same when AMEC were taken over by Wood Group in 2017.'

I know zero about when/how AMEC was takeen over by Wood Group.

In any case the above is irrelevant to Sidara's highly probable takeover of Wood Group.

I mentioned that under Sidara, Wood Group will prosper. Everyone wins (except those Wood Group shareholders deep underwater). This is obvious.

The alternative is that Sidara does not take over Wood Group. If this happens, Wood Group would take signifcant time to 'regain form' (in terms of management and financial performance), win market confidence and therefore market sentiment.

Sidara's takeover is by far the best route forward for Wood Group. Period.

@Icecool. Thanks for your advice not to 'fixate' about Wood Group's share price. For the record, I never fixate about any share price. That said, I became 'fixated' with Wood Group's share price as it dropped from circa .65p on Thursday 13 February, to a lowly circa 22p-24.5p on Monday 17 February when I added significantly over a number of trades. Needless to say, it is important to know when to buy a stock, and when to sell a stock.

FYI. I have no plans to hold Wood Group for any decent length of time. Wood Group is not a company I am that overly interested in. The fact is that it was completely over-sold on Friday 14 February and again on Monday 17 February. I saw an opportunity and jumped on it. Who wouldn't? A bargain is a bargain, a steal is a steal, a home run is a home run...well you get the idea! Lol.

I am a pretty serious private investor in stocks (in terms of cash invested) who is pragmatic and likes the odd risk here and there. I buy in the lows, and I sell in the highs. I hold some stocks (some like BAE I have help for 4 years...in fact I only sold out very recently). I sell some other stocks...and that will be Wood Group's fate, eventually. I never, ever get 'attached' to any company or stock (or share price)...that would be stupid. This approach has served me very well over the years.

Now, back on to Wood Group...

The fact is Sidara is Wood Group's natural buyer. The Sidara offer will be successful in the end. Everyone knows it.

Sidara and Wood Group may have to 'dance' for 2-3 rounds - probably to 65p (worse case) to 90p (best case), but that will do it. After that the takeover offer will be accepted.

No doubt Ken the CEO of Wood Group will already be preparing an RNS along the lines of 'In the best interests of Wood Group and its shareholders, we recommend Sidara's offer of...'.

The fact is that under Sidara (who already owns some 60 brands worldwide), Wood Group will prosper. Everyone wins. Wood Group (i.e. will be stronger, with its future assured), management, employees, stakeholders, partners, and most shareholders (i.e. except for those Wood Group shareholders who are deep underwater).

As mentioned earlier today at 9.27am (when the Wood Group share price was .2640p): For any Wood Group share holders - especially those who are 'under water' - buy soon and average down quickly, and you may do OK in the end.

For everyone else who owns Wood Group stock take the advice of the CEO and BOD and hold. Keep a cool head. Wait for further developments. Sidara has plenty of cash, and their offer will be far more than the current Wood Group share price of a mere circa 34p-36p! Lol

Be greedy when others are fearful! Still lots to play for here.

GLA

IMO & DYOR

To think the Wood Group share price was a mere .26827p at 8.05am today. What a difference a day makes...

There is now way a takeover will be a mere 34-36p i.e. current share price. No way! The minimum takeover would be 55p-65p on a bad day, but with all Wood Group's woes considered a takeover offer of 75p-85p is more reasonable for all parties.

In the meantime, there should be plenty of new investors/buyers who wake up to this fact, and dive in from tomorrow onwards for an easy ride up.

For anyone invested in Wood Group at over 50p, my advice is to buy in now and average down ASAP. Wait, I already said that at 9.27am today. The savy investors would have followed JO's advice then, so all good.

GLA - and enjoy the ride up tomorrow and all this week!

I posted below at 9.27am today...

'The institutional sellers have sold now, so the worse is well and truly over. As predicted the momentum has started to build today Monday in terms of the share price increase. Why? Simple. Because it’s cheap! In fact it is an absolute bargain at anything under 30p. After the share price reaches 30p it should rise to circa 40p comfortably enough over time, and then possibly pause for thought.

Deloitte will be under pressure to fast track review somewhat given recent events. In any case the review appears to have no material impact on Wood Group as stated by the CEO.

Also Wood Group has to be in the sights for a takeover. So plenty to play for.

For those who hold Wood Group shares it may be time to think about whether to add more shares in order to average down in terms of buy price….before the Wood Group share price breaks out further.'

Further to my above post early AM today, I do hope current Wood Group share holders took heed of my advice and bought in before the inevitable share price rise. If not, no problem - with an offer now clearly in play, the minimum offer would be 55-65p. Another player 'may' come along also. Either way, considerable profits to be made yet.

'Nervous nellies' will think circa 34p-38p is tops so better sell now. However, that is chicken feed.

To those on thos Wood Group discussion board who said I was wrong (you know who you are) and there is no way any party would be interested in an early interest/offer prior to the conclusion of the Deloittes review. It shows you really have no clue. Lol

To Wood Group shareholders, my advice is: Do not sell. Hold...or add. It will only get better!

But then...what would JO know?! Lol

@Monty888 If ‘Stu’ wants to invest in that DOG of a stock you suggested, then Stu is dumber than you. Lol

@Monty888 What a stupid and irrelevant post….promoting another stock on this discussion board. Desperardo lol

The institutional sellers have sold now, so the worse is well and truly over. As predicted the momentum has started to build today Monday in terms of the share price increase. Why? Simple. Because it’s cheap! In fact it is an absolute bargain at anything under 30p. After the share price reaches 30p it should rise to circa 40p comfortably enough over time, and then possibly pause for thought.

The search is now on for a CFO who is qualified with professional experience in the international oil and gas, and renewable energy industries and /or turn around experience. The new CFO will be appointed soon enough.

Deloitte will be under pressure to fast track review somewhat given recent events. In any case the review appears to have no material impact on Wood Group as stated by the CEO.

Also Wood Group has to be in the sights for a takeover. So plenty to play for.

For those who hold Wood Group shares it may be time to think about whether to add more shares in order to average down in terms of buy price….before the Wood Group share price breaks out further.

@Lochnagary In theory what you suggest makes sense.

Debt ought not to be an issue at the moment, as it is some time off. Between now and then, Wood Group will have a new CFO and the Deloittes review would have been completed, so the picture will be clearer. Also, interest rates should be lower and credit terms may be more favourable under a stronger, leaner Wood Group.

In addition, right now market sentiment on Wood Group is very, very weak (which ironically is also what makes Wood Group an excellent buy at these levels) due to the RNS on financials, pending Deloittes review etc. Therefore, the rights issue make very well not be taken with great haste or indeed be taken up fully. It's simply too risky.

I think it is more important for the CEO to appoint a highly credible CFO, and for that CFO to make RNS statements that will reassure the markets. Also the Deloittes review ought to be fast tracked, and disclosed, for better or for worse.

It is worth bearing in mind that Wood Group's contracts are not with 'mickey-mouse' companies, they are with top tier serious companies (EG Shell etc). This means that the forward projections on revenues and sales pipeline can be relied upon to a greater extent, as these contracts are 'iron clad' with incredibly low risk. This alone makes Wood Group an excellent buy at these levels. Revenue is assured, positive cash flow will resume, and debt will be reduced over time - all of this is a given. These areas need to be in focus for management and in their communications to shareholders.

In terms of the current Wood Group share price: As I mentioned late last week, I think the institutional sellers have sold now, so the worse is well and truely over. The momentum will start to build on Monday in terms of share price increases. Also Wood Group has to be in the sights for a takeover. So plenty to play for.

Personally, I have a considerable stake in Wood Group now. I have no intention to sell (but nor would I want to add under a rights issue). I do think the share price will recover to more commercial (i.e. reasonable) levels over the next month or so.

@.zstartz You too. I am in Porto Portugal right now. Enjoyed a tipple or three in a bar across overlooking the beautiful Douro River and Dom Luis bridge. Back at the hotel now, and reading and enjoying the commentary on Wood Group from all the usual suspects...IceCool, helloDave, YorkshireBlues and many others with even more dubious names like .zstartz! Lol

@zstarz. Thanks now you have explained the Hotel Chocolat takeover more fully. I did not follow the Hotel Chocolat story as I have no interest in it whatsoever.

My suggestion of double the current share price is not a 'formula'.

I happen to think it represents 'fair' (but not good, and certainly not great) value as it stands at Wood Group right now, and an offer of .55p or more would at least create interest and draw out other bidders.

This is why I am heavily invested in Wood Group, the upside is massive...after all right now the Wood Group share price is a lowly .264p per share!

@zstarz. says 'Each approach is on a case by case basis and generally a serious acquirer will put forward what they believe represents fair value for the company, mainly to secure immediate acceptance but also to deter a bidding war from other interested parties. As an example Hotel Chocolat’s takeover bid was at a 170% premium of the pre-offer SP closing price.'

Based on @zstarz. above post at 19.32 today...

Wood Group's closing share price was .265p (rounded up from .264p) on Friday. At 170% of this closing share price, it means the offer for Wood Group shareholders would be .45p 'to secure immediate acceptance but also to deter a bidding war from other interested parties'.

Interesting commentary, suggestion and analogy based on a 'real life' example.

And I thought my circa double of the current shate price (i.e. my example used of .55p per share) was reasonable. Aparently not...it should be less...far less!

@hellodave. I admire your optimism. Three bidders at £1.00 to £1.20. Great - can't wait to see them. What are they waiting for?! It would be better to make an offer now, before the Deloittes review is completed. First across the line and all that. Use the unknown outcome of the Deloittes review as a bargaining tool.

@YorkshireBlues. I welcome your optimism. I will happily take .90p to £1.00 per share. I cannot think of any company dumb enough to offer the average of £1.00 per share i.e an offer of £688 million and absorb all Wood Group's debt and otehr woes...but hey ho let's see.

Then again .zstarz says that Hotel Chocolat accepted an offer of 170% of the closing price (not sure if they were in management and financial turmoil at the time or not)...and that equates to an offer to Wood Group shareholders of .45p per share! Good grief!!!

@Icecool 'This is not AIM… no offer of 55p will be done. 💯'

I hope not. I hope it's more...

I sure hope it's not in line with .zstarz suggestion of 170% of the closing share price i.e. .45 per share!!!

@.zstarz So you value Wood Group even lower than I do i.e. 170% of the closing share price! Watch out, the knives will be out for you here! Lol

Of course each offer is case by case - that states the obvious. This is why I suggested .55p per share would be reasonable based on Wood Group's current share price of .265p (i.e. double the current share price) due to the issues Wood Group currently faces.

However, based in your Hotel Chocolat offer, you offer is much, much worse!

Based on your suggested Hotel Chocolat's takeover bid at 170% of the closing share price.

Wood Group's closing share price rounded up is .2650. Based on your calculation, this means the offer would 170% of .265p per share, which equates to a mere .4505p per share! To continue, .4505p per share x 688 million shares in issue, equals a takeover offer of a mere £310 million.

An offer for Wood Group (based accepted by Hotel Chocolat at 170% of the closing price) of a mere £310 million - that is chicken feed for the Oil and Gas sector!

Based on your suggestion, that is an under-payment of £69 million from what I suggested!

It would be good to receive an offer of £1.00 per share.

However, I don't think an offer of £1.00 per share will happen as it equates to an offer of circa £687 million.

Whereas the current market capitalisation is circa £182 million.

I think it is more reasonable to expect an offer of double the current share price (whatever that may be at the time of offer). Currently the share price is circa .265p, which means an offer of .55p per share i.e. £379 million. This takes into account the high debt currently on Wood Group's books, not to mention the other issues, which are well documented.

I would not say no to .55p per share, especially if there were other incentives thrown in.

I would definately not say no to £1.00 per share.

The CEO and BOD would say no to ANY offer. They are all far too used to their executive offices, salaries, bonues, shareholder schemes and other perks. This is why I mentioned the best course of action is a hostile takeover. The new company would be far better in all respects, and best of all the current Wood Group CEO and BOD would all be made redundant!

'I expect the Wood Group share price to regain upwards momentum from Monday next week onwards. Everyone knows the sell off is completely over done, and a share price of less than 30p is ridiculous.'

Many here would say anything under £1.00 per share is ridiculous...including an offer to buy Wood Group.

To them, I say: Don't run before you can walk!