Sidara gets extended deadline to present firm offer for Wood Group

In the UK, John Wood Group, an engineering firm based in Aberdeen, has extended the deadline for Dubai-based suitor Sidara to make a firm offer for acquisition until April 17. This extension follows Sidara's return for a second attempt at takeover after previously abandoning a deal last August amid global market turmoil and geopolitical uncertainties. Initially, they proposed four offers, the last estimated to value Wood Group at around £1.56 billion. The renewed interest seems linked to Wood Group's sharp decline in share price, which has dropped significantly over the past year. Wood Group, which provides essential oilfield and engineering services globally, experienced an 80% decline in its stock price, resulting in a market value of just over £200 million. Despite a recent boost due to takeover interest, the company continues to grapple with concerns regarding its financial and governance issues within its project arm. An independent review by Deloitte is currently underway, and the resignation of Chief Financial Officer Arvind Balan in February added to the turmoil facing the company. The prospects of Sidara’s interest appear bright, as market analysts speculate that the approach may signal a turning point for Wood Group after a tumultuous period, which included a failed attempt by Apollo Global Management to acquire the company last year for £1.68 billion. The exploration of Sidara's renewed bid also represents an evolving landscape in the engineering sector, where holdings are moving rapidly in response to fluctuating valuations. Overall, the coming weeks will be critical for Wood Group as it awaits clarifications regarding its financial health and governance issues following the Deloitte review and impending approval of its 2024 accounts. The extended deadline gives Sidara more time to navigate their options while keeping Wood Group in a precarious and monitored position during a period of valuable negotiation.