Aberdeen-headquartered engineering services firm Wood Group (LON:WG) has rejected a third improved takeover bid from Dubai-based Sidara.
In a statement, Wood said the company’s board received a third takeover proposal from Sidara on Tuesday, for a cash offer of 220p per share.
The third takeover bid valued Wood Group at around £1.52bn.
The latest offer represents an increase of approximately 3.8% to Sidara’s second bid of 212p per share, itself an increase of 3.4% from the initial offer of 205p per share.
Wood said its board unanimously rejected the offer on Thursday, concluding it “continued to significantly undervalue the Group and its prospects”.
Sidara has until 5th June to make firm offer
The FTSE250 company added: “There can be no certainty either that an offer will be made or as to the terms on which any offer might be made. Further announcements will be made as appropriate.”
All three of the recent offers from Wood’s Lebanese rival Sidara have come in below a separate takeover bid from US firm Apollo.
After a series of attempts, Apollo walked away from its final £1.66bn offer in May last year, which had valued the Aberdeen company at 240p per share.
Analysts have told Energy Voice that Sidara, also known as Dar Al-Handasah Consultants Shair and Partners, will need to increase its bid if it wants to succeed.
Ashley Kelty of Panmure Gordon said he was “not surprised that the bid was rejected after the Apollo overtures last year where multiple bids were rejected up to 235 pence per share.
“Sidara will have to top that to get the board interested, given the improved position of the business over the last year,” Mr Kelty said.
Earlier this year, Wood announced a cost cutting drive as the company seeks to deliver annual savings of $60 million from 2025.
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