Aberdeen-based engineering firm John Wood Group is close to finalising a £242 million sale to Dubai’s Sidara, marking a key step in its recovery from financial struggles and governance issues.
This offer, valuing shares at 35p, follows Sidara’s abandoned £1.5 billion bid last year. The deal also includes a £340 million cash injection to stabilise Wood’s finances.
Wood’s share price rose 17% to 29p after the announcement, though still far below previous highs.
The company has faced challenges including heavy debts, overstated profits, and the resignation of its CFO earlier this year.
The acquisition would combine Wood’s energy expertise with Sidara’s engineering capabilities, creating a global leader in consultancy services.
Wood will retain its brand and client relationships under Sidara’s ownership. Both companies are conducting due diligence, with Sidara required to formalise its offer by April 17.
Wood said: “Sidara has a strong track record of its acquired businesses prospering within the group.
“Wood would continue to operate as a standalone, client-facing brand, maintaining its identity and trusted client relationships.”
“This would ensure business continuity for existing clients while creating growth opportunities for the combined group and strengthening Wood’s commercial position.”
This deal could mark a turning point for Wood Group, providing stability and growth opportunities after years of turbulence.
