RE: Auditor’s report5 Nov 2025 21:39
"Just not sure why they’d pay anything for it, when they could pick up the bits they want later without any of the uncertainties and unknown liabilities they would also be buying."
Well, in the event of default and administration, there's often a deterioration or outright disintegration of the business before anyone can purchase the parts they may want. Clients and staff walk away, and much of the collective value is lost. Moreover, there's no guarantee buying the parts out of administration would work out any cheaper for them - the administrators after-all would try to maximize recovered value for the creditors and there may be other bidders for Wood's most valuable divisions, like Consulting.
In the event that Wood are able to organize a debt for equity swap to avoid administration, Sidara would have no option to "pick up the bits they want" either, as the creditors would then own the business and may have no interest in selling any or all of the parts Sidara might want.
In short, paying a nominal amount to get the functioning (mostly) company, whole, likely leads to the best outcome for Sidara. They were willing to offer significantly more last year, so they clearly have the financing to cover all of Wood's debt in addition to the current purchase price if they so choose. They could wipe the slate clean with Wood and operate debt free with its otherwise healthy EBITDA honed into a cash flow machine. It's easy to see why they were interested, and it was easy to see why someone else might be interested too, but alas, there's been no news or rumour on that front yet.
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