Dubai-based Sidara has launched a fresh bid to buy Aberdeen headquartered Wood Group, less than a year after its last takeover bid.
Wood confirmed it has received a approach, which saw shares rise by more than 33% in afternoon trading on Monday.
It rose by a further 7% on Tuesday morning to 40.49p.
Seven years ago, engineering firm Wood was valued at more than £5 billion but failed takeover attempts, job cuts and plunging profits have led to its share prices dropping by more than 97% and a valuation of under £200 million.
Time to make decision
Sidara made a £1.6 billion approach last year but at the time, said the prospective takeover was off “in light of rising geopolitical risks and financial market uncertainty”.
It has been given until 5pm on March 24 to announce a firm intention to make an offer.
Sidara is part of Dar Al-Handasah Consultants, which was founded in 1956 in Beirut. The group, which turned over £2.2billion in 2023, is privately owned by 44 partners working in the business.
Responding to speculation, a Wood statement said: “Wood shareholders are advised to take no action in relation to the proposal.
“There can be no certainty either that an offer will be made nor as to the terms of any offer.”
‘Disappointing’ financial year
The fresh takeover bid follows a tumultuous period for Wood, which has received a combined nine offers from Sidara and private equity firm Apollo in recent years.
It’s been a month of turmoil for the firm after it revealed a “difficult” and “disappointing” financial year and said “significant work” has taken place since the start of its “urgent” independent review by Deloitte, which is still ongoing.
Deloitte identified “weaknesses and failures” in Wood’s financial culture, governance and controls.
The firm expected a “very strong” trading performance in the final quarter of 2024 but it failed to materialise.
This lead to the decision to cancel its annual executive and employee bonus for the year.
And finally, on February 19, Wood’s chief financial officer resigned after 11 months over an “incorrect description of his professional qualifications”.
The board accepted Arvind Balan’s decision with immediate effect after he made an “honest oversight” describing himself as a chartered accountant instead of a certified practicing accountant.
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