RE: Let’s see what happens tomorrow !!!!!29 Jun 2025 23:14
@Kandos I agree with your posts. I too think that Wood will be sold while in suspension.
Of course, Wood's RNS on the FCA investigation has thrown yet another spanner in the works. This clearly provides Wood, Sidara and Wood's lenders with a new set of issues especially in terms of unknowns and risk.
As mentioned in my previous posts, lenders do not like uncertainty, ever. Wood has provided many successive waves of unexpected surprises and uncertainties since February to date. For Wood's lenders, the FCA investigation is the - not entirely unexpected - final straw. Of course, Wood's lenders cannot 'force' Sidara to buy Wood, but these lenders are obviously very, very supportive of such a transaction. Hence, the joint Wood-Sidara and Wood's lenders discussions/negotiations to date.
Although arguably the timing is 'right' for Sidara to make their formal offer of 35p and $450M, it would take 'balls of steel' due to the risks. Sidara's formal offer may be for less than 35p with the balance added to the $450M to reflect the increased potential risk in the wake of the FCA investigation (which potentally may cost millions).
Alternatively, Sidara may add another pre-condition 'pending the outcome of the FCA investigation' (or words to that affect). That said, Sidara ought to be aware of the allegations/scope of the investigation outlined in the FCA notification, so will understand where the investigation will be focused. Whereas, Wood shareholders only know the time-span covered i.e. almost 2 years. However, if Sidara are satisfied that the focus of the investigation is an 'acceptable risk', and do not want to wait or walk away until the FCA investigation is concluded (which can take years), then Sidara will not include 'pending the outcome of the FCA investigation'.
While Sidara remains at the table, Wood's lenders are of course very content to extend also. Wood's lenders know that eventually when Wood is sold, Sidara's cash injection of $450M (or more if Wood's audited accounts show material writedowns on revenues and assets as alluded to by the Deloitee's review) will provide Wood with financial stability with a stronger balance sheet and liquidity in order to refinance.
I cannot see how Wood can go it alone - as this path would be riddled with hurdles and risks - Wood's lenders will be very reluctant/uncomfortable to take as much as one step on that journey. Clearly, if Sidara should walk away (unlikley, but never say never), Wood would need to raise circa $450M cash (as per above paragraph), which means Wood would need to sell assets, or much more likely Wood would need a capital raise in which case Wood's shareholders would be left with pennies in the pound (on the assumption the capital raise will actually be successful).
Sidara will extend, and Wood's lenders will extend. IMO.
Wood's RNS will reveal all, and is due by 5pm Monday...same Bat time, same Bat-channel!
GLA & Goodnight.
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