Wood Group receives £242 million takeover bid from Sidara
- John Wood Group received a non-binding takeover offer from Dubai-based Sidara, valuing the company at £242 million.
- This follows a previous takeover attempt by Sidara that collapsed nearly a year ago.
- Wood's board expressed willingness to recommend the offer if it leads to a firm deal, viewing it as a better option for stakeholders.
In recent developments, troubled engineering firm John Wood Group, headquartered in Aberdeen, Scotland, has been engaged in takeover discussions with Sidara, a privately held network of engineering and design companies based in the United Arab Emirates. The new offer, valued at £242 million, includes a non-binding conditional offer of £0.35 per share to acquire the beleaguered company. This potential bid comes almost a year after a previous attempt by Sidara to takeover Wood Group was scrapped, which was worth £1.56 billion. At that time, discussions fell through amid various complications. Recently, Wood Group faced significant operational challenges, resulting in governance issues and the need to restate its financial accounts. As a consequence, the firm's share value dropped sharply, prompting the board to explore refinancing options to stabilize its financial situation. Following these developments, Wood's management indicated on April 14, 2025, that they would be open to recommending the latest offer from Sidara if it leads to a firm proposal, highlighting their focus on securing a sustainable capital structure. Wood Group has also mentioned assessing alternative financing avenues alongside the ongoing discussions with Sidara. The board articulated the need for substantial new capital to reduce the company’s debt and diversify its funding sources. Wood's recent share price surged by 11 percent after announcing the possible takeover bid, reflecting positive sentiments among stakeholders regarding this fresh opportunity as it could create a better financial scenario for the company. Overall, the situation underscores the precarious position of Wood Group, which employs around 35,000 individuals across 60 countries and operates within the demanding sectors of oil, gas, and renewable energy. The board's current stance indicates a proactive approach to navigate the turbulent waters of financial recovery during the ongoing negotiations with Sidara, marking a crucial juncture for the engineering firm.