Member Info for JamesOxford

Anyone seen ICECOOL???

I do wonder if this offer is in line with Icecool’s opinion of Wood’s fundamentals… or is the offer a reflection of market sentiment i.e. a premium of circa 10p on the closing price on Friday?

IceCool, IceCool where art thou??? Lol

@Blueboy25 I am confident that the initial offer made by Sidara was circa 85p in order for wood to open its books to Sidara. However, due to Wood’s recent ‘own goals’ Sidara dropped its offer in order to allow a cash injection into the company. Hence the total offer 35p for shareholders, and 50p cash for the company. Total outlay 85p. Simple.

BTW well done you have now made 33 posts. Silly boy

@johnnychainlocker No prediction. Just the fact that the RNS has alerted potential interested parties (Apollo, Worsley etc) to Sidara’s low ball offer which may in turn attract a bidder. Common sense isn’t so common, is it? Lol

@Bluboy25 Well done…you have now made 32 posts. Lol

@pickledpeck Good points. Another bidder may yet arrive. You know the old saying ‘it ain’t over till the fat lady sings!’ Lol

The Sidara unofficial equates to 35p cash for shareholders and 50p (I think it’s more like 52p) and cash injection for Wood. This means Sidara values Wood at 85-87p. End of.

The question is what on earth was Sidara’s opening offer in order for wood to open its books? Whatever it was Wood’s ‘own goals’ meant Sidara held the upper hand and slashed their offer.

I have a second question, where is IceCool? MIA? Lol

The off equates to 35p cash for shareholders and 50p (I think it’s more like 52p). Ash injection for Wood. This means Sidara values Wood at 85-87p. End of.

@longfell ‘James is patting himself on the back thinking he was right about the offer being 85p. What an utter fool he is.’

Not sure what you mean Longfellow. I posted that the offer was the same as my minimum valuation of Wood as a company. That does not mean that I think the offer should have been 85p - that was my valuation and that is all. Nor am I ‘patting myself on the back’. Personally, I think the offer should have been higher to reflect the synergies, cost savings etc. Unfortunately, the Wood situation is worse than expected, hence the lowball offer of 35p to appease shareholders plus 50p for the company. Sidara has always had the upper hand in these negotiations, and it has proven to be the case. Personally I am in profit, but I do feel sorry for long term shareholders who have been badly let down by the Wood CEO and BOD shenanigans.

@BeardedDragon You mentioned you were waiting for my comment. I posted earlier AM today. Below is a copy of my post from earlier today..

The offer equates to 85p per share, which was my at minimum valuation (i.e. 85p to 95p). However, shareholders only receive 35p, the remainder 50p is invested into Wood.

The latest set of accounts, cash-flow negative, and Deloitte's draft review were 3 'own goals' scored by Wood against Wood. After due diligence, Sidara did not want to pay any premium for Wood - the risk is simply too high for Sidara.

The RNS with Sidara's 35p offer may flush out another interested party...but they have to be quick.

Still a decent profit for me personally - but I do feel sorry for long-term shareholders who will no doubt suffer considerable losses.

Ken the CEO of Wood has 'led all shareholders up the garden path'. That's what happens when a CEO is appointed to run a company like Wood and who has no oil and gas industry experience.

The institutional investors would have been consulted already, so it's a done deal. Unless another bidder arrives in the nick of time.

Wood ...what a rollercoster of a stock! Climb aboard the rocket AM today! Lol

@Vilcan What do you mean ‘I told you so’…?

Vulcan you predicted ‘sub 20p going into suspension’…!

Lol

The offer equates to 85p per share, which was my at minimum valuation (i.e. 85p to 95p). However, shareholders only receive 35p, the remainder 50p is invested into Wood.

The latest set of accounts, cash-flow negative, and Deloitte's draft review were 3 'own goals' scored by Wood against Wood. After due diligence, Sidara did not want to pay any premium for Wood - the risk is simply too high for Sidara.

The RNS with Sidara's 35p offer may flush out another interested party...but they have to be quick.

Still a decent profit for me personally - but I do feel sorry for long-term shareholders who will no doubt suffer considerable losses.

Ken the CEO of Wood has 'led all shareholders up the garden path'. That's what happens when a CEO is appointed to run a company like Wood and who has no oil and gas industry experience.

The institutional investors would have been consulted already, so it's a done deal. Unless another bidder arrives in the nick of time.

Wood ...what a rollercoster of a stock! Cliemb aboard the rocket AM today! Lol

Wood as a company has a habit of scoring ‘own goals’ lately. Conversely, those same ‘own goals’ make Wood a very cheap buy for Sidara right now.

At the moment, as I see it, there are 8 possible scenarios!

1. On or before 17 April: Sidara makes a formal cash offer offer without caveats to close the deal. A deal Wood cannot refuse; or a couple of back-and-forths before 5pm 17 April and deal done. End game.

2. On or before 17 April: Sidara makes a formal offer subject to audited accounts. Wood takes Sidara's offer under consideration. Wood can then choose whether or not to request an extension. If an extension is granted, Sidara and Wood continue negotiations while Wood shares are in suspension (no more Wood roller-coaster rides on share price). The Sidara deal would probably be agreed while Wood shares are in suspension, in which case when Wood shareholders vote in favour, Wood shareholders who remain invested during Wood suspension receive cash for their shares. End game.

3. Sidara make no offer before 17 April but Sidara requests an extension instead. Then, 3A OR 3B applies:

3A. Sidara and Wood agree an extension in order for Wood to adjust and publish audited accounts. These accounts are reviewed by Sidara who then makes a formal cash offer for all of Wood and buys out Wood shareholders while Wood is in suspension. End game.

3B. Sidara takes a real risk in that Wood could decline, and instead use the Wood suspension as an opportunity to adjust then reinstate audited accounts, improve its business and financial situation as well as regain much needed trust and confidence with stakeholders, employees and shareholders via RNS updates etc. while the Wood shares are in suspension, which ought to drive the Wood share price up when it comes out of suspension. Result: Wood is more attractive to bidders, or does not desire to sell.

4. On or before 17 April: Sidara walks away without any offer, and cannot return for another 6 months. Then, 4A OR 4B applies:

4A. Sidara re-enters in 6 months and reviews Wood’s audited accounts, and then makes a formal cash offer for all of Wood. End game.

4B. If Sidara walks on or before 17 April, Wood does not entertain any further interest from Sidara, and instead focus on the improvement of its business and finances. After the Wood suspension, the Wood share price increases significantly, and Wood re-enters FTSE 250 within 3-6 months after suspension finishes. Other bidders may come out of the woodwork.

Hopefully Scenario 1 is announced 7am Monday 14 April. Let’s see what tomorrow brings…

IMO

@jenashon Good research on Emma Griffin - but to keep it in perspective it looks like she only owns 3,682 Wood shares, so not a serious holding by any means.

@BeardedDragon ‘So we will probably get an RNS at 4.45pm Thursday 17th just after the stock market closes for the Easter break.‘

I think a RNS 7 am Monday or 7 am Thursday.

However, I didn’t think of a release at 4:45 pm Thursday. I would find that quite funny as in quite smart… Especially if it contains an offer for all of wood for cash! AM Tuesday share trades would be ballistic! Lol

If Wood enters suspension (i.e. Sidara does not make a formal offer beforehand), as stated previously, I am happy to remain invested in Wood regardless of any Wood share price prior to suspension, and throughout the suspension period itself.

Why? Because I am sure Sidara will make an offer once they see the revised and audited accounts and that this offer will be recommended to Wood shareholders.

Result: All shares will be sold to Sidara while Wood is in suspension.

Outcome: Significant profits to be made for most Wood shareholders who had 'balls of steel' to hold throughout suspension.

Alternative to the above: Wood sorts itself out during suspension. When Wood comes out of suspension, its share price doubles and Wood reenters the FTSE 250.

Either way, a win-win outcome (although I prefer the clean and simple Sidara deal of cash for all of Wood).

@Vulcan Contrary to your post, I have always known that IF Wood enters suspension (i.e. a Sidiara offer if not made and recommended beforehand) that the Wood share price will drop.

Therefore, I can assure you that I personally have never slated you (or anyone else) who has made a Wood share price prediction of sub 20s if Wood enters suspension. If you have evidence to the contrary copy and paste such and refer to my specific post i.e. by time and date.

6th paragraph should have read as:

Of course, if a suspension is announced, the shorts will close their positions. However, this will be more than offset by investors who sell up prior to suspension so as not to 'trap' their invested funds in suspension for a period of time. Such investors will want funds for other investments that remain liquid. Therefore, prior to suspension, the Wood share price will drop, as only investors who do not require funds 'at the ready' will remain invested through the suspension period (whatever timeframe that may be).

Back to the title - will there be an FT Leak...? I doubt it. The Sidara-Wood negotiation is a fully tight ship, no leaks expected.

Just as there were no leaks or predictions on the timing or details of Wood's RNS on Deloitte’s draft review.

I do think there ought to be an RNS at 7am Monday. Hopefully with a Sidara cash offer for all of Wood. However, this type of maverick offer will take ‘balls of steel’ from Sidara. The reason is of course that of late, Wood seems to me to be an expert at scoring 'own goals'! with Wood’s recent RNS’ on financials (negative cashflow, when positive cashflow was predicted) and the Deloitte draft review (particularly in Projects) – all of which creates doubt and uncertainty in the minds of any would-be buyer.

Therefore, if there is no RNS Monday; then, I expect an RNS 7am Thursday 17 April. If this proves to be the case, I expect Sidara and Wood will want an extension (i.e. into the suspension period) in order to allow Wood more time to prepare and present the fully adjusted and audited accounts. On this basis Sidara can then submit a formal offer. This is by far the more prudent approach by Sidara, and one that personally I would recommend. If Sidara is fine with the audited accounts, it will make an offer. If not Sidara can walk away.

The suspension also means that Wood can work on refinance, secure new contracts, make new appointments etc. If successful, Sidara will likely have to pay more vs if they take a punt with an offer (based on unadjusted and unaudited accounts) before 17 April.

Of course, if a suspension is announced, the shorts will close their positions. However, this will be more than offset by investors who sell up prior to suspension so as not to 'trap' their invested funds in suspension for a period of time. Such investors will want funds for other investments that remain liquid. This will that prior to suspension, the Wood share price will drop, as onlyinvestors who do not require funds 'at the ready' will remain invested through the suspension period (whatever timeframe that may be).

Those investors who remain invested through the suspension period will now that during suspension, either Sidara will make an offer that is recommended and accepted by Wood shareholders (probable)...or Sidara will walk. If Sidara walk, then Wood will make positive progress across a range of areas (EG refinance, draft review recommendations, positive cash-flow, new contracts, analysis re-rates etc.) so when Wood comes out of suspension, it's share price will likely double in any case and they will quickly thereafter re-enter the FTSE250

IMO.

@IceCool. Sidara's 'field of battle' I referred to is the negotiations between Sidara and Wood. Negotiations are never easy to say the least!

@lightnotheat 'If there is an offer for Wood in excess of £1 then @Ice Cool, longfell and others suggesting a three figure bid price would be my total heros.'

With respect lightnotheat, your one and only hero ought to be Sidara - the one and only true knight in shining armour on his white horse - who incidently, is still in the field of battle!

BTW To date, no other heros (potential bidders for Wood) are forthcoming...they have their own battles to fight.

The current Zephyr share price does not concern me...

I am not surprised that the Zephyr share price has not increased (or doubled as a few have suggested) as there is no real news other than: tests are about to start.

Personally, I thought about selling over the last few weeks, as I saw better investment opportunities eslewhere. Then when tests are complete and shown to be positive, I would have bought back in. I suspect many other investors have thought/acted in a similar way. However, in the end, I decided I would stay invested as the test results ought to be largely/fully known at the end of April, which is a decent time-frame overall.

In terms of Zephyr's share price increase - the test results are the key. If positive, this news will be the first real 'boost' (the first of many) towards a sustainable hike in the share price. I will add substantially at that point, and no doubt so will many others, as at that point Zephyr's future production ought to be very secure indeed.