Member Info for JamesOxford

Look at all the uninvested on this Wood discussion board spreading fear and doubt...they all hoped/wished that Sidara would walk away in the last RNS. Did not happen...and will not happen in the next RNS on 12 June either. Sidara wants to buy Wood - that is clearly obvious to all and sundry...except the uninvested naysayers, who ought to get on and mow their lawns on a Sunday! Lol

As a reminder, Sidara IS at the table and will stay there:

'The Board of Wood has received a holistic non-binding conditional proposal from Sidara, comprising:

a possible offer of 35 pence per Wood share in cash to acquire the entire issued and to be issued share capital of the Company (the “Possible Offer”);

a possible capital injection of $450 million from Sidara to Wood; and

Wood seeking an extension of, and certain other amendments to, its existing committed debt facilities.

Sidara has confirmed that it has made significant progress with its due diligence on Wood, including in relation to its review of the points raised in the independent review commissioned by Wood.

Work continues on a range of alternative refinancing options to provide the Company with an appropriate and sustainable long-term capital structure. Having carefully considered the viability of these options together with its financial advisers, the Board of Wood currently believes that the Possible Offer represents the better option for Wood’s shareholders, creditors and other stakeholders.

Accordingly, the Board of Wood has indicated to Sidara that, should a firm offer for Wood under Rule 2.7 of the Code for Wood on the terms of the Possible Offer, it would be minded to recommend such an offer to Wood’s shareholders, subject to agreement of the full terms and conditions.'

It is as clear as day! Lol

@AimMaster Why do you are you are not invested imho

The Wood offer equated to 85p per share which was my valuation of Wood (i.e. 85p per share) prior to the recent run of events, which started with the Deloitee review. My post history shows this, however, you will have to go back a long way to see it.

AimMaster you fear and doubt and fake 'concern' over Wood shareholders holds no water with me...and there is absolutely no need for you to spend your Sunday 'worried' about me and my investments. Lol

@IceCool The fact is Wood has debt and liquidity issues. Unless Wood sells assets to achieve liquidity, then Sidara's offer to buy Wood and inject $450M is the default position. Senior management in corporate finance who operate within the oil and gas industry knows this.

Further, no matter how much you would like Wood to reject Sidara's offer (whatever that ends up at) and for Wood to continue on its own, Wood's own RNS dated 14 April shows Wood is clearly for sale; and includes the probable future direction for Wood as below (read it carefully and absorb the detail):

'Attractive proposition for Wood’s customers and employees

The proposed combination of Wood and Sidara would create a leading global engineering consulting company with enhanced scale, capability and diversification. By bringing together Wood’s deep domain experience with Sidara’s specialist strengths in Energy & Materials, the combined business would be well-positioned to lead and grow in these attractive global markets.

Sidara’s long-term strategic commitment to the energy transition, combined with its complementary end markets and strong geographic reach - particularly in the US and Middle East – is expected to enhance Wood’s established market-leading position and create opportunities for sustainable, scalable growth.

Sidara has a strong track record of its acquired businesses prospering within the group. Wood would continue to operate as a standalone, client-facing brand, maintaining its identity and trusted client relationships. This would ensure business continuity for existing clients while creating growth opportunities for the combined group and strengthening Wood’s commercial position.

For Wood’s employees, the combination would offer opportunities across a global network of brands. Sidara fully recognises the value of Wood’s talent and if an Offer is made which completes, Sidara intends to support Wood in taking actions to retain and support employees to ensure business continuity. This includes a commitment to uphold Wood’s pension obligations, ensuring schemes are funded in line with governing documents and statutory requirements.

Together, Sidara and Wood would build a stronger, more resilient company, well positioned to continue delivering for clients, creating opportunities for employees and holding a world-leading position in the global energy and materials markets.'

The fact is that Sidara is prepared to buy Wood for a minimum 35p per share plus $450M cash (to keep Wood's lenders happy), which equates to a cash outlay to the equivilent of 85p per share. Of course this 85p would have been offered to Wood shareholders, however, due to Wood's own self-goals, it needs to be split between Wood shareholders and Wood's lenders.

Sidara will not leave the table - read the RNS...it has not changed in all this time.

It will come down to how much Sidara will offer - it will not be less than 35p, as that will not be recommended. There may be a couple of back-and-forths, but 45p ought to get it over the line.

The word on the street is that there is another Wood buyer on the horizon...time will tell if this is indeed true.

Either way, I will happily take 35p per share, but 45p has a nicer ring to it!

In the meantime, let AimMaster and Dogger69 spread their fear and doubt - it's all entertaining stuff and laughable on a cloudy Sunday! Lol

@Dogger69 Why do you read posts and post on a stock that you are not invested in makes no sense imho

You are a weird one no doubt about it. Lol

Rinse, repeat, rinse, repeat...! Lol

@AimMaster Why do you read posts and post on a stock that you are not invested in makes no sense imho

You are a weird one no doubt about it. Lol

Just to add it is likely that the BOD who do not wish to be re-elected are also the same BODs who do not want to vote in favour of the Sidara offer (when it eventually arrives). In other words those BODs would rather resign than be seen to vote in favour of Sidara's offer of 35p per share plus $450M cash.

Sidara still has much work to do if it wants to buy Wood. It probably needs to waiver the requirement that all BODs vote in favour and accept a majority instead, combined with a revised higher offer of 45p (i.e. given there has now been confirmation of no further material changes to the Deloitte draft review i.e. no more surprises) would probably do it. Still small change for Sidara.

12 June Sidara announces it is still at the table. No material changes, so that is a no brainer for Sidara.

@IceCool 'This isn’t about liquidity anymore, it’s about trust....You keep saying a new board won’t change anything'

I have never said 'a new BOD won't change anything' - do not put words into my mouth.

It is about liquidity...and to a far lesser degree trust. Wood does have a debt and liquidity issue. That much is clear. This is why Sidara has offered to inject $450M cash into Wood as part of its offer i.e. to satisfy Wood's lenders. My earlier point remains the same: A new CEO and BOD still have the same issues to overcome i.e. the need to raise additional liquidity i.e. circa USD$250M 'soon'.

The reality is that the Wood BOD are under significant pressures. However, it is important that shareholders do not act in haste i.e. Don't throw the baby out with the bathwater. It is not soley the BOD fault that Wood is in the messs it is in...senior management (not BODs) have resigned/sacked recently with good reason. Ken is trying to fight fires on all sides, never an easy task at the best of times. A brand new BOD is never a guarantee of future sucess....they could vote against Sidara's offer, and still manage to take Wood into the deep dark abyss.

Although Wood can turn-around, it will be a huge effort - and key events will have to take place in the right order...and quickly.

The far easier and quicker route is for Sidara to buy Wood for a minimum of 35p per share. No doubt a number of institutional investors will vote this way.

Next stop 12 June, when once again Sidara will remain at the table. Sidara knows Wood is a goldmine. The question is when/will another bidder enter the ball park ready to pick up a bargain. Will Sidara be the early bird who catches the worm?!

I thought two movements firstly to 5.5p, then profit takers, followed by 7.5p all upon full test results due out soon. Watch this space! Lol

@Surin Surely you mean: Goodnight?

@Surin Q.E.D indeed.

@Surin What, no question...this time?! Lol

Goodnight.

@Surin Yet another question from you! Good grief! Sorry but I have to hit the books now...after all why would you want to have a conversation with a 'second year naive BA business student'?! Lol

@Surin 'JO, any indication that WG is unable to service its debt (other that $/£250 cash shortfall last reported)?'

All you do is ask questions, then you wait for the reply, and then make stupid comments. I have lost any interest in answering your 'loaded' questions. Besides you said 'let it all play out'...maybe it is time to take your own advice. Email your questions to Wood directly for an answer.

@IceCool Wood's lenders need to protect their 'investment' (aka loans) to Wood. These lenders need certain requirements fulfilled (one of which is liquidity). Wood needs to satisfy these requirements. Wood's lenders do not care who is in charge of Wood, all that matters to them is that Wood remains liquid, not only today, but in 12 months time. Obviously Wood's lenders were spooked when Wood suddenly announced they would be cash-flow negative, when prior to this all focus was on being cash-flow positive, Wood's lenders are quite rightly concerned. A new CEO and BOD still have the same issues to overcome i.e. the need to raise additional cash i.e. circa USD$250M 'soon'.

@Robert1234 I think from memory Sir Ian Wood resigned as Chairman of Wood in 2012...no doubt he is enjoying his retirement from big business and has other 'friendlier' projects on the go.

Better to advertise for a new Wood CEO and obtina applications from CEOs or COOs with seriously good experience within the international oil and gas industry.

@Surin You have really started to annoy me. Obviously due to time restraints and the fact you and I are random posters here I will not bother to go into depth as to how to turnaround a company. With all your questions, (especially around whetehr or not a cash injection is required...which is clearly answered in Wood's own RNS around Wood's lenders liquidity requirements - satisfied under Sidara's offer of $450M cash injection), it is clear to me you have not been involved in private or public company turn-arounds.

@Surin 'What is the current cash flow shortage? That's assuming cash flow is the issue...'

You need to read between the lines of Wood's RNS statements and Sidara's offer.

I have mentioned this before, it is clear to me that Sidara was to offer 85p per share cash for all of Wood, however, due to Wood's own self-goals, and in conjunction with discussions with Wood's lenders; Sidara adjusted its offer to 35p per share in cash and USD$450M cash injection. Refer to the Wood RNS, and you will see Sidara will inject an initial amount of USD$250M liquidity into Wood upon acceptance of Sidara's offer (which is not yet formal). It is obvious that Wood's lenders are wanting USD$250M additional liqudity 'soon', either via Sidara's offer or via Wood's sale of assets.

Time will tell if Wood is 'minded to recommend' Sidara's offer as a way of keeping Wood's lenders happy (i.e. as a back-stop) until such time as Wood can raise USD$250M on its own steam (i.e. via asset sales).

@Kandos. Good point.

Although I will benefit personally from the Sidara offer of 35p per share; I would rather see Wood turn-around on its own. As a successful investor, some of my biggest wins have been from company turn-arounds. To my mind, Wood needs a new CEO with high experience in the Oil and Gas industry (Ken does not have an Oil and Gas background) and supported by a BOD who are 100% committed to a 24 month pathway to profitability. Wood ought to raise £250M via a combination of Pension surplus funds, non-core asset sales, and increased cash-flow via Wood's Collections Depart (i.e. collect payments past due from Wood's clients) as a priority. All deptartments need to cut 5%-10% (depends on departments) costs within 6 months. Wood must continue to renew contracts with acceptable margins, and write new contracts at acceptable margins. Wood need to talk/negotiate with their lenders and obtain debt extentions for a further 12 months in order to reduce debt payments over an increased term. Wood needs to make changes at senior executive and management level with clear focus on relationships with stakeholders (partners and employees) and clients alike with a clear focus on profitability. Wood needs to promise the reintroduction of staff bonuses with 12 months if certain criteria are attained. Do this and within 12-18 months and in the current climate, Wood,will turn-around and the share price will rise to circa £1 easily enough. Early and tough decisions need to be made now.

@Surin. It seems to me to be mult-faceted.

Contracts written without enough margin due to time and cost over-runs etc. puts pressure on profitability. So such contracts needed to be written on lager margins to protect profits. In addition, it is clear that Wood's overdue accounts team have not been able to collect payments on time or within a reasonable timeframe which has put substantial pressure on cash-flow. Bother of these important factors have caused Wood's lenders to become nervous towards Wood's debt facilities and level of liquidity. Hence, why Wood AND Sidara are involved in talks with Wood's lenders especially around liquidity which can be swiftly resolved with Sidara's cash injection of $450M.