Sidara offer21 Apr 2025 21:46
Some very important points from the recent offer RNS's including the most recent of 17th April 2025.
1. As set out in that announcement, further extensions to the current PUSU deadline of 17 April 2025 WERE ANTICIPATED in ORDER TO ENABLE SATISFACTION or waiver of the pre-conditions to the announcement by Sidara of a firm offer for Wood under Rule 2.7 of the Code.
2. Sidara has confirmed that it has made SIGNIFICANT PROGRESS with its due diligence on Wood, INCLUDING in relation to its review of the POINTS RAISED in the independent review by DELOITTE.
The announcement by Sidara of any firm offer for Wood under Rule 2.7 of the Code (an "Offer") is subject to the satisfaction or waiver of certain pre-conditions, including:
a) legally binding agreement(s) in a form satisfactory to Sidara being entered into in respect of the Debt Modifications and the Sidara Liquidity Arrangements (as defined below);
b) the publication of Wood's audited accounts for the financial year ended 31 December 2024 = ✔
c) the unanimous recommendation of such Offer by the Wood Board of Directors and irrevocable undertakings from such directors who hold Wood shares to vote in favour of the Offer; = ✔
These boxes will be simple ticks, remember that Sidara have at this stage, forensically examined the completed Deloitte report (albeit draft) !!!!
d) completion of Sidara's due diligence; and final approval of the Sidara Board of Directors. = ✔
We can be absolutely certain that the Sidara Liquidity Arrangements of $450 million CASH LIQUIDITY injected into WG will delight the lenders and they will definitely re negotiate then for better financial terms (NB The terms of the Sidara Liquidity Arrangements are expected to be SUBSTANTIALLY similar to Wood's existing Term Loan (including as to pricing)
Of course these monies only help Sidara own a stronger, more resilient and robust company, which will be generating FCF very quickly AND an order book in excess of $6 BILLION !! They are not stupid, it has been structured to drive the very best position for themselves, NOT shareholders. They are sweetening the employees with no changes to the pension funds etc etc.
At this final hurdle, Sidara will not walk away, they have invested and researched extensively and cannot risk waiting another 6 months. I think it will go into suspension, various RNS's will then be released, namely ;
a) Lenders have agreed to restructure loans and extend waivers, based on the unequivocal money tranches agreed with Sidara have been satisfied in respect of the Debt Modifications and the Sidara Liquidity Arrangements
b) They 2024 FY accounts will be published (demons already known to Sidara)
c) official disclosed offer of 35p per share and agreement by all.
d) Wood Board recommend offer to everyone and their aunts and uncles !
These multiple RNS releases will be ALL whilst in suspension and the suddenly the final RNS explaining 35p accepted.
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