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Good post Alma! The Australian government stepped in to protect Worley as a company of national interest.

Will not this joke of a UK government finally step in to save/protect a strategically important UK company?

That was on an adjusted EBITDA in 2018 of $650m

2024 EBITDA was $450m not that much lower

Just looking at history, back in August to September 2018 the share price was almost £8 with the same number of shares in issue as now (677m).

Absolutely ridiculous that the BOD are now recommending £0.35 per share!

Surely a turnaround is possible here.

I think Sidara will have to put in a firm offer before there can be any voting. Its all in limbo at the moment.

Based on historical share price, I would guess most institutions that have been long term holders are at least holding at around £1.5 break even level. There are some chunky holders like Black Rock etc. between 5% to 3%.

From £1.5 down to £0.35 for a 5% holder would represent a loss of £38m, and a 3% holder a loss of £23m.

Question is, will they accept such a big loss, or gamble the few millions they could pull out to bargain for a better deal?

If they are already losing £38m+ what's another 12m for them, for a chance to recover more.

Or how many will want to buy in to not miss the action? Plus shorts to close.

Completely agree with Wiggly, good analysis. By agreeing such a low offer, the BOD have signalled to any other interested parties, come in with your offers, we're open to lowball offers, as long as its a bit higher than 35p

Its only a done deal if IIs are on board. Can’t see that happening. Unless there are dome sneaky backhanders going on behind the scenes.

What % of votes are usually needed to accept an offer for the whole company?

Or the board are desperate to stay on board, so to speak, and reap good wages/bonuses from Sidara.

Where as the IIs probably want to get rid of the lot of them.

Hopefully Sidara shot themselves in the foot with that conditional offer.

They effectively valued Wood at £585m although they tried to pull a fast one and pocket $450.

Hopefully now the IIs will come back and say give us that $450m and you have a deal

£585m offer effectively with cash injection.

That would be a theoretical 87p per share.

Surprising they went for the cash injection rather than pure per share offer.

I would say 0.1p is very realistic and probably the most we can hope for especially considering the JV will take a large chink of the equity.

As a very rough comparison, the smooth world class operation that is Pilbara has proven 4.75 million tonnes of lithium oxide in the ground. Zulu has an estimated 0.131 million tonnes.

Applying a simple fraction from the ore difference to the mcap, Prem/Zulu is worth around £58m

Ignoring the operational mess that it is compared to Pilbara. That equates to roughly 0.124p per share (ignoring the % the JV will take)

10p aint happening ever, not with 46.6b shares.

That would value PREMat £4.6b more than twice the mcap of Pilbara minerals. Who have much much more ore in the ground than PREM

Hi Robert,

Hydrogen storage is about 1/2 the efficiency of Pumped Storage Hydropower, plus all the additional high pressure etc. storage complications of hydrogen.

I don’t know why it has become such a fad, I learned at Uni back in 1990’s about the inefficiency of hydrogen hydrolysis then use of that hydrogen for energy. Only to be used when you really need the hydrogen, ie for rocket fuel for example.

Apologies for off topic.

Nice find thanks for posting. Should be good for WG.

I completely disagree with Hydrogen hype as an alternative energy source because it takes more energy to produce/extract than it can give back by burning/battery reactions. So in that respect it is a fool’s venture and disappointing that governments are backing this wasteful idea.

At the AGM they voted through the power to dilute by 43% which is roughly potential 634m new shares.

at 1.2 p he would only raise £7.6m

at 1.0p he would y raise £6.3m

Seems hardly worth it. I think he is going to have to wait to release some good news first to pump the share price then raise at a much higher share price.

But you’re absolutely right, at the next decent pump watch out for a placing soon after. Almost all the AIM companies do it. For example HE1 did it soon after their stratospheric pump to 3.5p.

If you can sell just before the placing and buy back in after thats the best thing to do.

Also if you only count long positions rather than subtracting short positions. Short positions are not shares that are held.

Those are only institutions that change their position I believe?

If you look on google its over 80%

Yup, I took profits too. Zak did predict it will hit around 0.35 then fall back.

Have previous FT leaks been helpful to Wood Group?

If they have, it would be nice if they could helpfully leak the amount being discussed :)

Usually on a Sunday, right?