Aberdeen company Wood has rejected a second, improved takeover proposal, worth nearly £1.5 billion from a Middle East suitor.
The latest cash offer from Lebanese company Dar Al-Handasah Consultants Shair and Partners comes in at £2.12 per share.
This represents an increase of about 3% from an initial approach, worth £2.05 per share, at the end of April.
Wood’s shares were worth 185.6p at today’s London market close.
A statement from Wood said: “The board carefully considered the latest proposal, together with its financial advisers, and concluded that it continued to fundamentally undervalue Wood and its future prospects.
“Accordingly, the board unanimously rejected the latest proposal.”
Middle East suitor has until June 5 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.”
Under City “put up or shut up” rules, Dar has until 5pm on June 5 to either announce a firm intention to make an offer – or walk away.
Wood provides consultancy, project management and other services in 60 countries.
It is one of the north-east’s biggest employers.
The firm’s global headcount totals more than 35,000 people, including about 4,500 in Aberdeen.
Earlier this year the company revealed pre-tax losses from continuing operations totalled £49.6 million during 2023, compared with losses of about £547m in 2022.
Revenue was 8.7% higher in the latest period, at £4.67bn.
Recruitment drive
The firm also said it was recruiting for 200 new jobs in Aberdeen and 500 UK-wide.
And at the start of this month it announced plans to create 40 new roles in a Granite City-led project to help French energy giant TotalEnergies reduce its carbon footprint.
Wood was the target of one of the largest private-equity businesses in the world last year.
But the long-running pursuit by Apollo Global Management, which proposed a deal worth £2.40 per share, fizzled out.
There were fears of a large number of job losses if New York-based Apollo had gained control of the business, and decided to relocate or streamline its Aberdeen operation.
Who’s the firm trying to buy Wood?
Beirut-headquartered Dar describes itself as “one of the world’s leading consultancies, providing design, planning, engineering, sustainability consulting, digital solutions and services, and project management for buildings, cities, transportation, civil infrastructure, water and the environment”.
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