Member Info for JamesOxford

As mentioned previously, I believe Sidara has valued Wood at 85p. In normal circumstances, 85p per share would be offered to Wood shareholders. However, Wood's recent RNS' are anything but normal...

It is clear to me that Wood is under 'close watch' by their lenders.

As a result, Sidara has had to restructure their offer to accommodate Sidara's shareholder and Sidara's lenders i.e: A: 35p cash per share for Wood shareholders; and B: £450 million (equates to 50p cash per share) as a cash injection into Wood, which acts to appease Wood's lenders.

Wood' lenders are obviously and rightly concerned about Wood situation and its many 'red flags', such as Deloitte draft review which highlighted several issued not the least of which is the accounts (incorrect over the last 3 years), false information provided to accountants/auditors (Project division), expected write-downs, negative cash-flow to mention a few...the extent of which remains more of less unknown to anyone other than those who operate on a 'need to know' basis for commercial reasons.

This leads me to the main point about Sidara's offer...

The reality is that 'debt modification' is a serious issue for any public company. Wood requires 'debt modification' (always a rather 'polite' term) in order to reduce payments to their lenders - such requests are typically made when companies face immediate and serious financial difficulties.

Wood's current lenders are concerned.

Therefore, Wood's lenders require Sidara to deposit cash into Wood as security, due to the fact that Wood currently faces a series of headwinds and uncertainties.

Further, Wood will struggle to find any lender who is willing to refinance Wood's debt under Wood's current circumstances and lack of trust and confidence in Wood at senior executive management level.

At this point in time, Sidara's offer (should it be made formal and proceed to conclusion) - of 35p per share and £450M cash injection with agreed terms - is the best outcome for Wood, its lenders, its employees, and lastly its shareholders (especially any new shareholders, not so for long-term shareholders).

All that said, the Wood story continues...it's been a roller-coaster rise, and it's not over until the fat lady sings!

RNS tomorrow 7am will reveal all!

IMO

BTW IceCool I would rather have you as CEO of Wood than Clueless Ken! Seriously!

@IceCool I didn't want to copy and paste too much of your original post and it was quite an embarressment for you...but here's another snippet...you also said: 'Strategic review of Projects, consider a controlled wind-down of that unit, sell-off, or even a management buyout for £1 if they’re brave enough. Basically, ditch the liability, keep the brand and core cash-generating ops clean.'

'Ditch the liability'? Er, easier said than done! The Projects division is Wood's rather large 'can of worms' to put it mildly! Hence, cross-company guatantees...and that's just the start. I think your knowlege on how to 're-set' (to use a Starmer phrase) a company needs some polish...a whole can or two in fact!

I could go on, but please don't make me IceCool, my sides are still splitting from laughter!

@IceCool 'Here’s how I’d do it, Create a separate legal entity under the Wood umbrella purely for Projects (the legacy Amec/FW liability sinkhole). Keep it standalone, with its own ring-fenced debt, contracts, liabilities, and minimal overlap with the rest of the group.'

Just had a chance to catch up - so only bothered to read the last couple of pages on this discussion board.

IceCool you are the comedian...I burst out laughing when I read the above! Even if lenders approved your wacky idea to 'ring-fence' the Projects divison, your plan falls apart under the most basic of scrutiny. For starters, lenders will want cross-company guarantees etc. It would be an absolute mine-field of legal work for Wood and its lenders! I could go on about all your ideas, but won't for the sake of my own sanity...

I vote we replace Ken with IceCool!!! We are pleased to announce the appointment of Wood's new CEO IceCool...who BTW also has zero Oil & Gas experience....come to think of it - it's a match made in heaven! Lol

I added AM today. The upside is decent at current levels. That was my last top up until Sidara buys.

GLA

Wood clearly is under pressure to sell.

If anyone has any doubts, Wood's own RNS as recently as Monday reads as:

'The Board of Wood is continuing to work with Sidara in relation to the pre-conditions to an Offer and to agree the full terms and conditions of the Offer. A further announcement will be made in due course.'

It is clear to me that Sidara will make a formal offer of cash of 35p per share, plus £450M cash for the business with terms set out and agreed between both parties.

Sidara wants to buy Wood and is the natural buyer. Sidara is in the right place at the right time.

We all wish the Sidara offer was for a more realistic 85p cash per share, but Wood's unexpected late 'own goals' in the fourth quarter made that offer impossible. We are where we are...

That is my last post tonight.

GLA

@Surin Sorry? When did I say Wood was entering bankruptcy?!

@YorkshireBlues Fair point.

Sidara have to make a formal offer by 5pm 17 April and that offer ought to include details of terms of offer.

Unless of course, Sidara and Wood agree to extend the period into extention to enable Sidara to table a formal offer once the audited accounts are known.

An RNS must be issued by 5pm 17 April one way or the other.

@IceCool Anyway we will see who is right:

You say Wood institutional investors will reject Wood's BOD recommendation to accept Sidara's offer, and then call an EGM, and sack Wood's BOD, and install a new BOD, and then refinance the company, make it cash-flow positive, and write off the write-downs over the previous few years...and we will all live happily ever after.

I say Wood institutional investors will accept Sidara's offer. Wood will achieve terms set out. Sidara will own Wood. In the fulness of time, Wood will become stronger and more profitable under Sidara. But well before then you and I may be on another stock discussion board discussing that company's 'fundamentals' and 'market sentiment'. Lol

@IceCool. The Wood CEO and BOD must act in the interests of its shareholders at all times.

As a reminder of Wood's own RNS:

'Work continues on a range of alternative refinancing options. However, 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 an Offer be made on the terms set out above, it would be minded to recommend the Offer to Wood's shareholders, subject to agreement of the full terms and conditions of the Offer.'

@Surin Good to see someone else looks at the Sidara offer in it's entirety. Too many here look at it only from the shareholders perspective. The truth is shareholders are always last to benefit.

I would think Sidara’s opening offer was 85p and it was reasonable enough for Wood to ‘open the books’ and perhaps negotiate a higher price. Since then, Wood has score a series of ‘own goals’. Therefore, Sidara re-worked it’s offer to address the current Wood situation and restructured its offer to 35p cash for shareholders, and 50p cash injection for Wood. This type of buy-out structure (part cash for owners and part cash to prop up the business) is common place for buyouts of distressed private companies.

Wood stated in their own RNS that they are in negotiations with Sidara and 'minded' to accept such an offer.

Wood (not Sidara) crashed its own share price via its recent RNS releases that were to put it mildly a series of 'own goals'. Wood’s own RNS made it clear that Wood has come to the end of the road...no more options are left for Wood.

Wood's accounts are a mess which now results in write-downs etc. Wood has breached loan arrangements. Wood is cash-flow negative. Wood needs cash immediately and has taken steps to stop the cash drain, such as immediate cancellation of all employee bonuses.

Result: Wood's lenders and institutional investors do not trust Wood for patently obvious reasons…hence their unofficial advice is to sell Wood to the highest bidder at the earliest opportunity.

Sidara is the highest, and only bidder. Period.

So what next? I think at 7am Thursday, Sidara will make a formal offer of 35p per share and a cash injection under terms already outlined, all of which seem commercial, reasonable and measured; and most importantly achievable by Wood

@Icecool. You are completely out of step with current affairs:

On Monday, Wood said: 'The board of Wood currently believes that the possible offer represents the better option for Wood's shareholders, creditors and other stakeholders. The board of Wood has indicated to Sidara that, should an offer be made on the terms set out, it would be minded to recommend the offer to Wood's shareholders, subject to agreement of the full terms and conditions.'

It doesn't get any clearer than the above.

Sidara offer 35p to Wood shareholders as well as a much needed cash injection into Wood.

Game, set, match Sidara. Well played.

@Icecool Wood has self-destructed and is a complete and utter mess. Sidara’s offer will be approved and recent shareholders will do well. Game, set, match Sidara. Well played.

@Icecool Wood are clearly run out of road with their institutional investors. Poor leadership, poor communication, poor forecasts, poor results etc. These shareholders will take the 35p and move on to pastures anew…as we all will.

@Luca I remember you mentioned you hope Wood does not accept a deal and you will wait for recovery. Who knows what the future is - at the moment it looks like Sidara’s formal offer will be made 7am Thursday and it will be recommended to shareholders and approved. Wood is a rollercoaster ride…

You have your reasons to sell and that is fine. A £30k loss to you may not be a big deal. No one ought to judge. Your decisions are yours and yours alone.

Good luck and might bump into you on another discussion board…but only if the board is full of weirdos with names to match. Not much fun otherwise! Lol

@lightnoheat. Good post. I would add that for me the Sidara offer of 35p is already priced for risk, hence I think Wood need to agree terms of offer and complete those terms within a reasonable time. Then it’s payday for Wood shareholders.

To think Ken said only 12 months back that £2.30 significantly undervalued the company. Ken- now revealed as the ‘emperor without clothes’ and currently employed as the ‘court jester’.

@Chicomimi It’s called train travel…beats looking out the window!

Sidara will make formal offer 35p with conditions already set out and known. Sidara will want to keep its reputation as a trusted acquirer of companies in tact. So deal will proceed as is.

Sidara will not want to back out of the great deal Wood has created for them. Wood boxed themselves into a corner through very poor leadership, management and decisions at executive level and series of ‘own goals’ - Ken is now fully revealed as the ‘Emperor without clothes’. Wood had to accept Sidara offer as it is priced well based on Wood share price COB Friday…and obviously Wood is desperate for the cash injection.

Sells AM today expected as nervous private investors sell out uncertain of a deal. Greed vs fear…fear wins every time.

Shorts will start to slowly close their positions small amounts to keep under the radar.

Personally I will hold and wait for the Sidara ‘offer conditions’ to be completed by Wood and 35p cash payout. A nice - but not spectacular - return in these turbulent times.

GLA

@katstrangler, Agreed, Formal offer made 35p for Wood shares - bank the profit or book the loss. Move on to the next investment. Simple.

Any anger needs to be directed at CEO of Wood. The buck stops there, always has always will.

@longfell I hate to break it to you but as Wood shareholders we receive 35p per share. Not 85p. You’re a bit slow on the uptake to say the least. Try to keep up. Lol