Wood Group extends takeover talks with UAE suitor Sidara
Aberdeen-headquartered Wood Group said Sidara – a privately held network of engineering and design companies run from the United Arab Emirates – now has until April 17 to make an offer or walk away under City takeover rules.
The previous so-called 'put up or shut up' deadline had been set for after market close on Monday.
It follows Wood Group's confirmation last month that Sidara had returned for a second takeover tilt less than a year after walking away from a deal.
Sidara abandoned a deal last August, blaming global market turmoil and geopolitical risks, having put forward four takeover proposals – the last valuing Wood Group at around £1.56 billion.
It is understood to have made the fresh approach due to Wood's recent heavy share price falls.
Shares in Wood Group, which have been given a small boost on news of takeover interest, lifted 5% in Monday morning trading on hopes a deal remains on the cards.
Sidara's decision to abandon a deal last summer sent Wood Group's shares plunging, dealing a blow to investors who have suffered a languishing share price and a number of failed takeover attempts for the company.
FTSE 250-listed Wood Group, which provides oilfield and engineering services, saw its shares tumble 80% over the past year, giving it a stock market value of just over £200 million before the latest bid interest – significantly lower than the £1.6 billion approach made by Sidara last year.
Its stock market woes have been compounded by concerns over the financial and governance culture within its project arm following a recent independent review, as well as heavy debts.
In another unfortunate twist, Wood Group's chief financial officer Arvind Balan resigned in February after admitting making an inaccurate claim about a chartered accountant qualification.
Wood Group is waiting for the results of the review by Deloitte, as well as the sign-off of its 2024 accounts.
Bid interest from Sidara comes after a failed private equity attempt to take over Wood Group in 2023.
Apollo made an approach worth £1.68 billion, or 240p per share, to buy Wood Group after four previous approaches were rejected, but eventually abandoned plans to make a firm offer.
Wood Group provides consultation, management and engineering services for the oil and mining sector, with operations in more than 60 countries.
However, it has focused more heavily on its sustainable business recently, helping companies with decarbonisation and the energy transition.
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