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Joeko the RNS disagrees with you:

“ Sidara notes the recent announcement by Wood and confirms that Sidara made a preliminary approach to the Board of Wood regarding a possible cash offer for the entire issued share capital of Wood.”

So dramatic, bust eh? There is no indication of that in the 14 Feb trading update. Or in the latest 35p offer RNS. Only that 35p represents better return for investors right now. Which is true because otherwise there will need to be a massive dilution or d4e.

But no going concern issues.

Could be that the BOD simply had to accept this offer to open negotiations.

Had they rejected it at this turbulent time for the company it could have looked bad.

The institutional holding is the main saving grace in this whole situation. If they were all dumping that would indeed panic me.

I wouldn’t have invested if WG was mostly PI owned.

Thanks Surin, I tried to find their Feb 8.3 but couldn’t. So I don’t know if they increased or reduced

M Partners Capital LLC 2.75%

Is this a new position? I don’t remember seeing a 8.3 RNS from them before?

Its not free for Sidara to engage in these talks. Its not like casual window shopping.

There was a discussion on here back when this latest approach started between two chaps who sayid they used to work on takeover panels. I think in the end they agreed the cost of these type of talks to the one approaching is as much as 2% of the final sale price. So lets say we exclude the $450m injection, at 35p per share these talks are costing Sidara around $6m not a trivial figure. They must be fairly serious to be shelling out that kind if money.

100%

Its all down to IIs and Funds. With over 90% of voting rights it will be over to them to vote the offer through if a firm offer lands.

I am just speculating, I think the BOD had to recommend the offer in order to play nice so things can proceed to next steps.

Imagine if they rejected the first offer like last year, they would risk Sidara walking, but now they need them.

Have to agree with Captainswag. If the only shares being traded are a small free float of PIs the share price can easily be manipulated up and down by MMs and Institutional shorters. Seen it many times on Nasdaq where most of the shares are locked in with IIs then the small pool of PIs being manipulated affects the share price by unreasonable amounts completely disconnected from fundamentals.

I would like to avoid suspension too. It would be safer with more options. For example if the offer did get upped/converted to 85p per share there could be a chance to get out before the offer is finalised/falls through if the share price goes up to near the offer.

However with suspension its all or nothing. Either an offer is agreed or they walk away whilst its suspended.

I don't think it would be these clowns. If some one could convince the IIs to put $200m in, I am sure for that they would demand to remove this whole BOD and select their own as a condition

Refinancing wouldn't be so bad, only problem is it would take convincing IIs to put a lot more money in.

Lets say they raise $200m for 100% dilution. And the $200m of further disposals as per Feb 14 RNS and $50 savings relating to 2025. There's the $450m.

In a year or two the mcap could soon be back to over £1b and that would equate to a share price around £1 with 1.3b shares in issue.

But looks like the IIs don't have stomach for this.

90%+ Institution owned. There will be no mass panic dump. They held all the way down from £2.20 last year they are not going to dump now, nor have been. Institutional % holding is steady.

They are about to go into some serious negotiations why would they dump now lol.

This is not AIM!

The under 10% PI holding will have very little to no influence on anything.

Aim mister this isnt AIM lol. This is a world class engineering company. Nothing is out of the possible even the government could step in like they did with Worley.

"The offer is firm at 35p"

sorry to correct, it is not firm. We are waiting for the firm offer. I am sure it will come Sidara are desperate.

"Just waiting on II TO DUMP IMHO"

Aint going to happen. They will wait for the 35p firm offer so they can negotiate higher.

Back to green!

Sidara are trying to pull a fast one where they move $450m from one pocket to another. No harm in trying. I think this will be rejected by IIs and they will say no, give us a pure per share offer.

The Times says:

"The implied offer is valuing Wood Group at 85p per share — when the capital injection is included — but shareholders will probably want to understand what the outcome of the accounting review will be and what the restated accounts look like before committing either way."

So it does effectively value Wood at 85p per share. Therefore if they have the balls the IIs will go back and say no thanks, give us that whole 85p and you may have a deal.

In hindsight they should have swallowed their pride and raised last year when the share price was £1.5 (or even when it was higher due to Sidara bid) and would have avoided most of this mess for a much smaller dilution.

Even if they did a raise or a debt for equity swap, even diluting 100% and lets say they raise £200m

It would be short term pain sure enough, but if that frees them up to become cash positive the share price could easily recover back to £1 / mcap to £1.2b+

I guess the problem is the IIs don’t have stomach for that they want out now?

Otherwise it seems with II support they could easily get put of this mess without need for Sidara.