Wood Group reveals fresh takeover approach from Dubai-based Sidara

Troubled engineering firm John Wood Group confirmed that Dubai-based suitor Sidara has returned for a second takeover tilt less than a year after walking away from a deal.

Aberdeen-headquartered Wood Group said it had received an approach from Sidara, sending Wood’s beleaguered shares rebounding by more than 33% in afternoon trading on Monday.

Sidara walked away from a deal last August, blaming global market turmoil and geopolitical risks, having put forward four takeover proposals – the latter 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.

FTSE 250-listed Wood, 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 – 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 last week after admitting making an inaccurate claim about a chartered accountant qualification.

Bid interest from Sidara – a privately-held network of engineering and design companies run from the United Arab Emirates – comes after a failed private equity attempt to take over Wood Group in 2023.

Private equity firm Apollo made an approach to buy Wood Group worth £1.68 billion, or 240p per share, having seen four previous approaches rejected, but eventually abandoned plans to make a firm offer.

Wood 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 of late, which helps companies with decarbonisation and the energy transition.