Latest news with #ArvindBalan
Daily Mail
30-06-2025
- Business
- Daily Mail
Wood Group takeover talks extended again amid regulatory probe
John Wood Group has again extended the deadline for suitor Sidara to make a concrete takeover offer for the company. It follows the launch of a City watchdog investigation into Wood Group last week after an independent review unearthed 'cultural failings' with its accounting practices. The North Sea-focused oilfield services provider told investors on Monday Dubai-based Sidara now has until 5pm on 28 July to put forward a 'put up or shut up' proposal, having originally given the firm until today to do so. Sidara began a fresh move for Wood Group in February after a previous attempt to acquire the company in a £1.7billion deal last year failed. However, Wood Group refused to accept the offer after two months of talks, blaming 'rising geopolitical risks and financial market uncertainty'. Sidara eventually put forward a far lower 35p per share bid in April, which values Wood Group at around £240million. The offer additionally includes a potential $450million capital injection and Wood Group possibly pursuing an extension or amendment to its current debt facilities. Wood Group shares have plummeted by approximately 84 per cent over the past year amidst cash flow problems, massive contract write-offs and accounting failures. In February, the Edinburgh-based firm warned that it expected between $150million and $200million in negative free cash flow this year owing to subdued trading and legacy claims liabilities totalling about $150million. Its chief financial officer, Arvind Balan, resigned soon afterwards when he admitted to inaccurately describing his professional qualifications. A month later, Wood Group admitted that its previous financial statement would have to be restated after a Deloitte probe uncovered 'material weaknesses and failures' in the financial culture of its projects business. Following delays in publishing its 2024 results, the company's shares were suspended from trading on the London Stock Exchange in April. And just last week, the Financial Conduct Authority (FCA) began its own investigation into Wood Group, which will look at the firm's conduct between January 2023 and November 2024. Founded as Dar al-Handasah in Lebanon in 1956, Sidara is a network of engineering and design companies employing about 21,500 people with a specialist focus on large-scale building projects. Wood Group employs 35,000 individuals across more than 60 countries who give consultation, engineering, and management services to the energy and minerals sectors. Private equity giant Apollo Global Management tried to purchase Wood Group in 2023, making four proposals, including a final offer of 240p per share, before the latter walked away without explanation.
The Herald Scotland
23-04-2025
- Business
- The Herald Scotland
Iraq contract boost for Wood as bidder considers options
The wins come as the jobs of thousands of Wood staff working in Aberdeen and offshore in the North Sea may be at risk. Wood employs 4,500 people in Aberdeen and the North Sea operations it runs mainly from the city. The group is in talks about a potential takeover by a bidder based in the United Arab Emirates. The Scottish firm's bargaining power appears to have been reduced following a series of dramatic developments in recent weeks. READ MORE: SNP Government 'laser-focused on delivery' claim rings hollow Wood announced plans for hefty cost cuts in February, which were expected to result in job losses, as directors prepared to slash the valuation of its assets. The company made the move as it waited for the results of an independent review into contracts at its troubled projects division, which helps oil and gas firms develop new fields around the world. Chief executive Ken Gilmartin insisted at the time that moves to 'right size' the group would leave Wood well placed for growth in attractive markets. Days later the company faced embarrassment after it told investors that chief financial officer Arvind Balan had stood down following the 'incorrect description of his professional qualifications in various statements in the public domain'. In late March the group published the results of the review of the projects division, which highlighted a range of failings. Wood noted 'inappropriate management pressure and override to maintain previously reported positions' and instances of unreliable information being provided to the group's auditors. Publication of Wood's annual results for 2024 has been delayed, from April 30. READ MORE: North Sea giant plans $500m investor payouts amid slump fears However, last week Dubai-based Sidara tabled a non-binding takeover proposal at 35p per share which valued Wood at around £240 million. Wood directors said that after considering alternatives they would be minded to recommend a formal offer from Sidara on those terms citing the interests of shareholders, creditors and other stakeholders. Coming months after Sidara decided to walk away from a £1.5bn bid to buy Wood, the latest approach may look opportunistic. However, with Sidara also proposing to inject $450m (£335m) into the Wood business, the company appears to see significant potential in its target's operations. After focusing on supporting oil and gas for decades, Wood has expanded into a range of low carbon energy markets in recent years. It remains unclear if Sidara will proceed on the terms outlined. On April 17 Wood announced that the deadline for Sidara to confirm it planned to make a firm offer for the group or walk away had been extended to May 15. READ MORE: North Sea jobs cull looms after blockbuster oil and gas deals Employees may be anxious about the prospect of Sidara acquiring the group. Sidara may look to combine Wood with its other engineering operations or find other ways to squeeze costs out of the business. The loss of another stock-market listed firm would be a blow for Scotland's corporate sector. A series of Scottish engineering firms have been acquired by bidders based outside the country in recent years. Glasgow-based power specialist Aggreko was bought by private equity investors in 2021, for £2.1bn. Some Wood shareholders may see the proposed deal as the best way of securing value for their holdings. Shares in Wood have plunged from 211.4p in August last year to around 20p. The company faced pressure from dissident investors who were unhappy about its share price performance before the recent decline. If Sidara does not proceed another bidder may decide to step in. However, Wood has effectively been in play for months. US investment giant Apollo made repeated takeover approaches in 2023 culminating in one that valued Wood at £1.7bn. It decided to walk away in May that year. Wood chief executive Ken Gilmartin (Image: Wood) Mr Gilmartin's confidence in Wood's operations will be put to the test if the group is left to soldier on as an independent. Wood has won two contracts with TotalEnergies worth $11m in total to help debottleneck and upgrade existing facilities on the Ratawi gas field. The group has hired 70 Iraqis to work at its Ratawi operations hub to support work on the contracts. Wood has been working on Ratawi since 2023. It said it currently employs over 4,000 people across the Middle East, having increased headcount in the region by 500 in 2024.
The Independent
31-03-2025
- Business
- The Independent
Wood Group warns over need to restate accounts after ‘weaknesses' uncovered
Wood Group shares have tumbled once again as the firm said it was set to suspend shares after warning it would restate accounts following 'cultural failings' uncovered in a review. The troubled engineering and oilfield services firm said it was expecting to make 'material' adjustments to previous financial statements and its balance sheet for the past three financial years. This means its results for 2024 – which had been due to be published on April 30 – will be delayed, which will see its shares suspended as a result. Shares in the FTSE 250 group plunged by more than 30% on Monday, with the group having lost nearly 80% of its stock market value in the past year. It stressed it remains in talks over a potential takeover by Sidara – a privately-held network of engineering and design companies run from the United Arab Emirates – with its suitor given until April 17 to make an offer or walk away. Aberdeen-based Wood Group said the draft results of an independent review by Deloitte found 'material weaknesses and failures in the group's financial culture' within its projects business unit and engagement between the division and its group finance team. It added: 'This included inappropriate management pressure and override to maintain previously reported positions, including through unsupported dispensations, and over-optimism and/or lack of evidence in respect of accounting judgments. 'The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors.' The firm stressed there has since been significant change within the group and steps taken to address the failings discovered. Russ Mould, investment director at AJ Bell, said: 'The deadline for Sidara to formalise a takeover deal has been pushed to April 17 but whether the latest revelations cause a rethink for the Dubai-based group or complications in the timetable remains to be seen. 'While the issues revealed in a draft review of the business mainly relate to historical performance at its projects business unit and do not relate to cashflow, they raise questions of culture given the failure to maintain robust accounting standards.' Sidara abandoned an initial takeover tilt 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. 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. 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.
The Guardian
31-03-2025
- Business
- The Guardian
UK oil firm admits ‘cultural failings' after it withheld figures from auditors
The UK oil services company John Wood Group has admitted that its financial results need to be restated, after a review found 'cultural failings' led to information being withheld from its auditors. The FTSE 250-listed company said the independent review, carried out by Deloitte, also found 'inappropriate management pressure' to stick with existing financial reports. Shares in the company – which is in takeover talks with a Dubai-based suitor – plummeted by 31% on the news, and are down by 84% over the past five years. The Aberdeen-based engineering and consultancy company, which employs 35,000 people, said Deloitte had found 'material weaknesses and failures in the group's financial culture' within the projects division, and engagement between the unit and group finance. This means that financial results will have to be restated for 2022, 2023 and 2024, and profits are likely to be lower than previously reported. The Deloitte review identified issues in a number of contracts in the projects division, particularly in relation to 'legacy lump sum turnkey projects' – projects where a contractor handles everything from design and planning to construction and handover. It also unearthed problems with the application of accounting standards, such as holding amounts on the balance sheet that should have been written off. 'This included inappropriate management pressure and override to maintain previously reported positions, including through unsupported dispensations, and over-optimism and/or lack of evidence in respect of accounting judgments,' the company said. 'The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors.' The group was audited by KPMG. It added that were 'no material issues' in Wood's other businesses – consulting, operations and investment services. Wood said it had taken action, including changes in important roles in finance, and was committed to strengthening its financial culture, governance and controls. It is likely that, due to the 'extensive work' needed to complete the audit, it will not publish its 2024 accounts by 30 April, which would lead to its shares being suspended from trading. Wood remains in talks with its lenders over refinancing options. Last week, Wood's chief financial officer, Arvind Balan, quit abruptly after it emerged that he had misstated his professional qualifications, and was replaced on an interim basis by Iain Torrens, who previously served as CFO at TalkTalk and the financial services firm Icap. The company is still in discussions with Dubai-based Sidara, a group of specialist engineering and design companies, whose deadline to make a firm offer or walk away has been extended until 17 April. Sidara has made a number of attempts to buy the company, and last week offered 230p a share, valuing Wood at £1.58bn. Amid much to-ing and fro-ing, Sidara pulled out of a bid last August, citing 'rising geopolitical risks and financial market uncertainty'. Sidara, which was founded in Beirut, Lebanon, in 1956 as Dar al-Handasah, provides engineering and consultancy services on large building projects. Nearly two years ago, Wood rejected a series of bids from the US fund manager Apollo Global Management, whose final proposal offered 240p a share, or £1.7bn.
The Independent
24-03-2025
- Business
- The Independent
Wood Group extends takeover talks with UAE suitor Sidara
Troubled engineering firm John Wood Group has given its Dubai-based suitor Sidara more time to come up with a firm offer. 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.
