Member Info for Kando

"This is being scammed at the moment 35 piece is not good enough. It should be rejected."

It should be rejected if it's a highly dilutive RI or D4E that you prefer. 35p seems like a very good price; it seems like a distressed fire sale price, on that I agree with you, but it is the only non-dilutive form of recapitalization on offer at the moment.

The company has got itself backed into a corner having run out of runway on its path back to cashflow generation. It has said it needs recapitalization, lenders are presumably pressing them on that. So it's a buyout with cash injection, or another form of recapitalization: RI or D4E, which shareholders should not want.

Pick your poison, but don't pretend Wood necessarily has the luxury of rejecting Sidara and the outcome wouldn't be a hugely negative one for shareholders. I am still of the opinion that shareholders should be hoping for other bidders to increase the final sale price than hoping the sale falls through or is rejected. That seems more like turkeys campaigning for christmas.

"and you could have found it too by asking the right questions only you keep on believing your own programmed view of reality just like those drunk on decades of TV style programming. Everything is hiding in plain sight.. "

Wow, boring.

I think I saw you on a Weird Weekends with Loius Theroux 25 years ago.

"long line of goyim"

Ah, there we are, antisemitism to boot. Completes the bingo card.

I've set the red-pilled folk off. Sorry everyone.

"Although most people know that vaccines have caused longer term damage and in fact death some cases"

While vaccine injuries happen, most people also recognize that they've eradicated or kept at bay some of worst diseases to afflict mankind. Billions of lives have invariably been saved by vaccines. But let's leave it there. Let's not have another covid vaccine misinformation campaign which is what it sounds like you're getting at.

"I suspect Ice is a ex-director or someone very senior"

This could just be the funniest thing I've ever seen written on lse.

Outside of his "contributions" on Wood Group chatboards, it's easy to picture Icecool ranting about vaccines, chemtrails and how governments are hiding that the world is flat. There's us assuming he must struggle keeping gainful employment, and someone else thinks he must have been a director of a billion dollar company.

This from GRaff though, who has twice said:

"I would rather see Would burn up, than sell it to Sid for 35p"

Both times misspelling Wood. And both times professing to rather seeing his investment go to zero than make a profit. So perhaps that's to be expected that we'd have a different impression of Mr Icecool.

"Despite winning some great contracts recently, I still believe Wood's overall revenue will decline in 2025 compared to 2024 and their EBITDA will decline substantially more (i.e. at least 20-30%, maybe even more)"

Let's hope not. Their guidance hasn't been that reliable of late regarding cash flow, but has been hitherto fairly accurate regarding EBITDA, and they're to date and recently still forecasting double digit EBITDA growth for 2025.

Revenue I could see falling however - they have after-all sold off a number of businesses since last HY accounts, so that ought to be expected somewhat.

KiJaHu,

It's not improbable the lenders have a preference to see the accounts in an audited state before agreeing to the debt modifications, which in turn allows Sidara's first tranche of liquidity and recommendation from Wood to accept their offer.

A lot of this situation can only be resolved simultaneously, with multiple parts conditional on each other to occur. It might even be complicated by the auditors being unwilling to sign off on the going concern statement if cash is as tight as it sounds, and so Sidara's liquidity would need to predate the audited accounts, which as it stands, per their conditionality, would only come after the audited accounts. At some point, one or all parties are going to have to bend and flex to satisfy each other's terms - and we're just not there yet.

"This is not helped by the corrections required to an unspecified number of previous years accounts."

Kjet. This has been specified. FY22, FY23 and HY24 for profit/loss and FY22 and FY23 but not HY24 for EBITDA adjustments.

As to the rest Bjet has already said it. It is within Sidara's gift to waive any of it's preconditions, including the publication of the audited accounts. It can make the bid at any time it sees most fit.

Daz, something like that could yet be on the cards here.

It's important for everyone that Sidara be facilitated in helping get Wood over the line with lenders, get liquidity injected, debt modified and/or extended, and the ship broadly stabilized. Then there's nothing about the way this proposed offer has been structured to stop another interested party from wading in and gazumping them at the 11th hour.

No other interested parties would have any incentive to interrupt or spook Sidara at this stage, but after the bid is formalized and a tranche of liquidity has been released to Wood, and (hopefully but not necessarily) audited accounts have been released, then another party could assess the worth and whether they would be willing to outpay Sidara. For them the picture would be much clearer having waited. For Sidara it's the chance of grabbing a bargain by doing some of the legwork itself.

£242m + $450m is not a lot for near half a billion EBITDA that's growing at double digits. I still think this poses a decent value proposition for a lot of would be bidders. Significant cash flow could yet materialize over the subsequent 3 years given the strong underlying earnings and non-recurring exceptionals rolling off, so the ROI would be quite attractive at the cost of essentially buying Wood's current debt pile.

"or the horror dream, the deal will happen behind close doors, as sidara is the only and/or maybe proffered bidder, wood will be delisted and the shareholders (myself and yourself - maybe) lose everything."

Sorry gsei, I took for granted you knew your rights as a shareholder. There can be no deal "behind closed doors", shareholders, both institutional and private will get a vote on any deal and to pass, the offer would have to exceed the implied value after other forms of recapitalization, like a Rights Issue or Debt for Equity swap.

They also can't just "delist" a stock.

If the offer is too low then some combination of asset sales/rights issue/debt for equity swap becomes a greater value proposition for holders and it would be rejected. There's a floor to how low Sidara could go. 35p may or may not already be it. And we wouldn't have a chance to know that until we see the actual state of the finances, but suffice to say, Wood, Sidara, its lenders and key institutional investors will already know the state of the finances to a greater or lesser degree. So one have to assume 35p is at or above that baseline for the Board and it's advisors to be "minded to recommend" the sale.

"and then it turns out the accounts justify a valuation of 150p"

This level of delusion is why I'm putting you back in the filter bin Ice. It's just not worth engaging with someone so far removed from reality.

Your greed far exceeds your sense of reason.

"I have a morbid feeling that either Sidara (UAE) or BlackRock (USA) will act/persue with this same as J.P. Morgan Chace in regards of First Republic Bank. The 'deal' will wipe off all shareholders.

Have any of you considered this scenario?"

What about CoolStory (BRO)?

Yesterday you pushed pulling out of the proposed 35p takeover by Sidara and pursuing D4E as the preferred option:

"Rather than that, the next best thing is that Sidara to pull out and Wood will have 1 more chance: Refinancing - to avoid bankruptcy."

If that's your investor "feeling", best keep it to yourself Gsei. Is this a racism thing? Are you disgruntled employee who doesn't want to work under Middle Eastern owners, is that it? That's surely the only thing that explains your posting history. You sure don't sound like a shareholder. You'd rather dilution and wipeout than accept the only rescue bid on offer (which is double the current suspended market price).

Yes, excellent post Gonzo. For too long this chat has been clogged up with debates on the realities facing Wood Group. Let's talk more about IceCool's emojis. They make his deluded ranting that much more palatable.

I somewhat doubt it. There's a lot to audit over multiple prior years, and they'll want to be thorough and irreproachable having signed off inaccurate accounts previously.

It would be nice to get another trading update soon though.

"If it goes into admin - secured creditors will get their pie, unsecured might get disappointed a bit."

On this point, the debt is all unsecured. There are no secured creditors afaik.

Wood's assets are in skills, know-how and experience, the don't own many fixed assets - they mostly lease property, and you can't secure debt against staff.

"@Kando, not if they will get delisted and then bought out. Don't think Sidara wants anyone getting a profit on the back of their deal.

Thats the worst possible scenario which for myself and many other is in fact a nightmare.

Rather than that, the next best thing is that Sidara to pull out and Wood will have 1 more chance: Refinancing - to avoid bankruptcy."

Don't know why you're addressing me, but I disagree with what you posted. Sidara buying it for 35p is not the "worst possible scenario". Refinancing in the form of a RI or D4E is by far a worse scenario, as the company have told you. You think raising $450m when the company is trading at £127m mcap won't dilute you into oblivion?

The math of that been run here before. To simply break even over Sidara's 35p proposed offer price after that level of dilution, you would need the company to have a subsequent mcap of £1.8m. ~15x its current value. You think that likely within 3, 5, 10 years? How long do you want to wait to break even on what's being proposed?

You've got your nightmare scenarios mixed up Gsei. Sidara pulling out is the nightmare scenario.

"Looking forward to getting my 35p+…

20p average that’s a tidy profit…

Can’t grumble…."

That's genuinely hilarious coming from you... the second most hysterical, deluded, always angry idiot on this board. Has someone normal stolen your account?

Just two days ago you posted this amongst all the other ranting and raving:

"Hopefully Sidara will walk away, the offer is rubbish."

But now you're looking forward to your 35p from them? Joker.

Last time they were extended, they had been valid up to the 30th April and the business announced the extension of the waivers to June 30th in a Business Update on that day, at 10:47 on the 30th April, in addition to informing about the likely suspension of trading.

The initial announcement on obtaining the waivers came on the 31st of March, in a Business Update advising on the findings of the draft Review. They were referenced as having been obtained in the past tense, so presumably had been obtained before the 31st of March and hadn't warranted an announcement on their own.

It's possible the further extension of the waivers doesn't warrant an RNS in and of itself, and will be announced with the next update, but I am surprised they wouldn't have added it to today's PUSU extension RNS. Personally I would consider the extension of those waivers to be relatively important given the situation.

Rock, I'm not sure. I feel like if they no longer needed them, that would be cause to inform the market. As in they had come to a settlement with lenders over the historic breaches.

It would be a dream scenario if they genuinely no longer needed them - as in have calculated conclusively that they never broke them to begin with - but I somewhat doubt that's the case.

I'm still operating under the assumption we'll yet get a separate update regarding the waivers.

Still no RNS about waiver extensions though, I would have thought that would have been rolled in with the PUSU deadline extension. Still need confirmation that those waivers are in place going forward. You'd assume so, but it's not a given.