Takeover target: Oil industry engineer Wood Group turned down a takeover £1.4bn offer from Dubai rival Sidara
Takeover target Wood Group’s profit margins grew in the first quarter of 2024 even as revenues fell 6 per cent, the oil industry engineer said.
The Aberdeen business updated the market on its performance just a day after it revealed it had turned down a takeover £1.4billion offer from Dubai rival Sidara.
Wood is the latest London-listed firm to be eyed by overseas predators.
To bolster its defences yesterday, Wood said it is making progress with a restructuring to save up to £48million a year from 2025 after cutting about 200 jobs.
Profit margins grew in the first three months of 2024 even as revenues dropped 6 per cent, the FTSE 250 firm said.
But City experts said that ‘more could be done’ as London’s stock market is gripped by crisis, with bidders hunting for undervalued companies.
Packager DS Smith, haulier Wincanton and housebuilder Redrow have all agreed to be bought this year. Wood said on Wednesday that Sidara’s offer ‘fundamentally undervalued’ the company.
Shares rose 0.6 per cent, or 1.1p, to 194p yesterday, having jumped nearly 17 per cent in the previous session.
The bid came a year after private equity giant Apollo abandoned a £1.7billion offer.
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