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"Bloomberg UK

Fed Might Have to Cut Rates Before May, JPM's Michele Says"...

Take away current market turmoil, the bigger picture should lead to lower interest rates.

Therefore refinancing by 2026 wont be a problem for Wood after suspension.

It's not local to WG, paid shorts are out everywhere. There is little wonder, they will make money in the current market and more with their ability to destroy any positive sentiment. through baseless drivel.

Flurry of new accounts with a negative narrative... very interesting.

Nothing like posting with the historic credibility of zero. Sentiment is all they are attacking here, can't see them influencing institutional investors. Psychology at work.

We know the wider market is down today... you get zero prizes for stating the obvious.

Shaml89, If Sidara walk away - they're losing out on a chance to profit from the current mistrust WG BoD find themselves in, and at the same time, they're missing out on eliminating a 'competitor' from the market (although 'synergies' is a better way of framing you post depending on narrative/context). This is too good a situation to pass up.

Sidara have spent a lot of money already, seeing if WG fits within their portfolio - synergies and interest confirmed by their return.

Someone will be 'potentially' putting up the money (The potential being linked to refinance after previous reinstatements - again an unknown), who's to say they will be entertained again once finances resolved? So it might as well be them - They have 'cash' to make good use of. They can incorporate this injection into their offer for the whole of the company.

The positives outweigh the negatives by far here in every respect with regards to Sidara placing a bid, with exception of current market turmoil which again, will work itself out in the long run.

Stumpy, at this point either position regarding a bid before or after accounts could make sense... the worst of the news is out. A clean up of accounts only gives a minimal uncertainty, and one that Sidara could easily resolve going forward.

Sidara will only get the chance to place a bid if an extension is granted. That might be a bigger risk to them at this point than arguing over a few £ when the accounts are reinstated. Who knows... but a bid still looks likely to come either way.

Sm66, putting a more positive spin on the below: as AberdeenAndy previously posted. The value of the projects P/L might be a lower positive... which inturn would be better than Neutral and much better than negative. Therefore, over stated profit and over paid tax... how much of the FY23 buisness projects EBIT (87M) & FY22 EBIT (80M) has been misrepresented is the question.

Taverham, I also expect this relates to incentives provided to complete projects on time, and thus benefiting some employees short term... until now. It's industry norm to provide these incentives to ensure project completion as often once projects are complete, lots are looking for a job (in other words, incentivised to prolong the project).

Sm66, not entirely. Your example would have to mean the projects buisness is non-profit (Neutral and written off the books entriely)... however the findings may be that projects are loss making, which make the value negative as opposed to neutral. This is the part we don't know, however I agree that it shouldn't be a large enough value +/- to have effected the SP in such a way.

To support stated duration of suspension:

Parts of WG business as a % (Values being approx. from FY23):

Consulting - 14% - All good

Projects - 40% - < (Deloitte review) This is the area identified for 'cultural failings'... These issues can be pinpointed as not everyone is willing to end their career so easily, I would assume this has come down to incompetency other than malicious intent.

Operations - 40% - All good

Investment Services - 5% - All good

Central costs - 1% - N/A

The hard part has been done by Deloitte already. The FY22 & FY23 P/L Adjustments on specific projects will delay the FY24 obviously… but not for as long as some on here think.

As per HY24 business update:

· No material issues identified in our other business units (Consulting, Operations and Investment Services)

Foot note:

If Sidara can calculate the correct positions within projects or even estimate them, they may well place a bid on the basis that these issues will not effect the forward business and take that amount off the top off their offer. They have until the 17th April to decide. If not, the books to be cleared up, the issues will be resolved, and our short-term SP to recover in the coming months, bringing back confidence to the business and it's investors/lenders.

Nonsense. Suspension will only be between 1-2 months max. (This ain't an AIM gamble). Most of the work has been done and they know what areas to review (projects) in each year.

The news that's in the Deloitte review coupled with the negative cash is not sufficient enough to have capitulated the share price from 110p to 25p - a reduction of around 75%. Remembering that the P/L adjustments are ring fenced to specific projects. The employees who have committed this offence may also be under investigation as this kind of behaviour is not only career ending, but it's illegal.

Woodgroup are not distressed. They have a lot more time to work this out than some suggesting immediate refinance at current levels. The price is where it is due to sentiment and priced to the worst case scenario.

I'm sticking with £1.20 first bid... The current share price means nothing. It's the underlying fundamental value of wood group that's important here. It wont be sold cheap just because of current sentiment. Woodgroup is a huge company, and over the years they have diversified a lot, albeit it's not made the most profits, but in times like these, looking back, it wasn't the worst choice.

Does anyone seriously think institutional investors would accept a bid as low as 40p or 60p? No.

The real value of Wood-group is much more. With the right leadership (Which is Sidara) it can add to that value.

If Sidara don't want it, why are they still at the table? Cash offer satisfies for both parties here.

And good try neg heads, your position regarding debt refinance is negligible until Sidara walks.

AberdeenAndy, I agree this is a plausible scenario and why I think suspension is not a bad thing, if that ends up being the path we go down.

Again, suspension is not bad it's a normal course of action for late audits, the actuall day to day runnings of the company are not affected. It's only bad for those who want to be in and out quickly, as you won't have access to your shares until audited accounts are cleared up and WG start trading again.

MyLastChance... very good post and detail into breaching loan covenants. Which is our main issue going into suspension, I do belive we will get a waiver extension, as we won't know the extent of the breach until after the books are cleared up.

Between now and then, Sidara are still at the table.

Global politics is talk of the town, but I'm not one to belive things are as bad as the media make on... you often just need to look outside to see the sky is not falling.

Over the longer term 5 - 10 years, everything evens out, and these 'situations' more often become 'opertunities' in the long run. Whether Sidara see it like that or not has still to be seen.

We know Sidara are serious about aquiring Wood, but it was my understanding that this was subject to the Deloitte report. We now know prior adjustments will be required to the balance sheet of previous years, however this doesn't effect the forward buisness or the company infrastructure, which is the biggest part of Sidaras interest.

Sidara are still a competitor of Woodgroup and limiting the extension plays on Woodgroups side. Finances can be sorted with or without Sidara and once this is done, Sidara will once again have a competitor in the region.

Understandably Sidara will want to get place a bid for the best price, and the Deloitte report exposes some inaccuracies within the accounts, but this shouldn't put Sidara off acquiring the underlying buinsess, forward contracts and eliminating a competitor in the process.

If Sidara don't place a bid, I think they will come to regret it.

If an extension is given, I'm not sure how long this would be, given that Woodgroup will be suspended from the 30th April, and what this means for shorts remaining in during this period...

I suppose we are all going to find out shortly.

"Under the UK Takeover Code, if a potential bidder makes a "no intention to bid" statement (Rule 2.8), they are generally barred from making another offer or acquiring interests in the offeree company's securities for a period of six months."

Correct OG. :)

Although the ball may be well in Sidaras court, if they don't try to score any goals, they wont win any medals...

Sidara might ask for an extension and get rejected by the take over panel on the 17th April... This is the game were playing.

We were doing a fine job of kicking our own tyres before they joined the party. Yes, I agree it looks like we have also been kicking in the windshield and side panels, but it was all going fine until Sidara asked us to take it to we-buy-any-car for an evaluation.

Following the rejection of a bid (if it happens), we would likely get extensions to covenants until clarity is received over the books. Which we are all in hope that only minor adjustments are required.

It is in everyone's interest that a bid goes through... but it's not the end of WG if it doesn't. Perhaps it will just be the start of a much needed reality check.

Walkietalkie... Good to hear from you again.

I don't doubt it. 'A put up or shut up' offer may require a 'take it or leave it' bid (taking it to the wire).

Tomorrow morning or the 17th, I'll be holding for the cash offer.

"You can't create a Woodgroup overnight. - But you can buy one" 🤝

If your short, risky risky times. TO is your worst nightmare.

Authorisation from Dubai inbound - RNS could land at any time.

Sidara are clearly still interested, they have now seen the Deloitte report and let it filter into the market. If they were not interested, they would have walked away by now.

Their first offer will come, and it must be at a premium.

Waiting until after the suspension is not an option IMO. They are risking the Take Over panel refusing an extension on the 17th April, then it's going to be another 6 months before they can come back... And do you think they will be entertained a 3rd time? I think not...

The 17th April is a put up or shut up (and don't come back) do not pass go, do not collect $200. Straight into takeover jail.

Wood are extremely undervalued at current Mcap, and they won't want to sell this business for pennies on the pound. You can't create a Woodgroup overnight.

Deals are being worked, talks are ongoing and Sidara want the buisness.

Show me £1.20 first offer... we're waiting 🫴 💰