Wood Group returns £1bn

 
City A.M. Reporter
OIL SERVICES provider John Wood Group said yesterday it will buy back shares to return the £1.05bn promised to shareholders from the sale of its well support division.

The company said it will purchase up to 32.1 per cent of Wood Group’s shares within a price range of 605p-625p per share, representing a discount of 6.1 per cent to three per cent to Friday’s closing price.

The firm’s shares were flat yesterday, closing at 644p to value the company at £3.4bn.

Wood Group, whose customers include BP and Royal Dutch Shell, said in February it intended to return cash to shareholders after it sold a unit that helps boost oil recovery from mature fields to US conglomerate General Electric for about $2.8bn (£1.7bn).

The proceeds of the tender offer will be returned to shareholders by 7 June.

If any of the full £1.05bn is not returned to shareholders through the tender offer, the company said it would return any remaining balance via a separate, later B share scheme.