In key news on UK stocks, John Wood Group PLC (GB:WG) shares soared nearly 10% as of writing, after the company announced that it was exploring the possibility of a potential takeover by Dubai-based Sidara Group. Consequently, Sidara will be granted access to the company’s due diligence materials. The response came after Sidara submitted its fourth and final proposal on May 29.
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Wood Group is an engineering services company with three business segments: Consulting, Projects, and Operations. Meanwhile, Sidara, previously Dar Al-Handasah Consultants Shair and Partners Holdings Ltd., is a group of specialist firms that is focused on designing, project management, digital solutions, and more.
Wood Group’s Takeover on the Cards
Earlier in May, Wood Group confirmed receiving a proposal from Sidara Group at an offer price of 205p per share. The company rejected this and two other offers from Sidara, citing concerns over valuations and an upbeat outlook. In the latest offer made last week, Sidara Group increased the offer price to 230p per share.
The company further stated that the UK’s Takeover Panel has given Sidara time until July 3 to either declare its intention to make an offer or withdraw the proposal under the UK takeover rules.
Additionally, Wood Group mentioned in its update that there is no certainty of any offer at this time.
Are Wood Group Shares a Good Buy?
In the last month, Wood Group shares gained 24% due to the takeover news. The stock was further supported by strong figures in the company’s 2023 annual results and a positive start to 2024 with Q1 results.
On TipRanks, WG stock has received a Moderate Buy consensus rating based on two Buy and two Hold recommendations. The John Wood share price forecast is 191.25p, which is 6.4% below the current trading price.
