Aberdeen-headquartered Wood (LON:WG) has confirmed it has received a fresh approach from rival firm Sidara regarding a possible takeover bid.
The Dubai-based firm walked away from making an offer for Wood in August last year after months of takeover speculation.
On 3 July Sidara had made a “‘final offer” in a previous bid to acquire Wood at 230p per share due to be decided by 31 July.
But in August, Sidara said it opted against making an improved offer “in light of rising geopolitical risks and financial market uncertainty”.
Since then, Wood’s share price has collapsed from around 200p per share to its current level of around 34.7p per share.
On Monday, Wood confirmed an approach from Sidara “in relation to a possible offer for the entire issued and to be issued share capital of the company”.
Under UK “put up or shut up” laws, Sidara now has until 24 March to announce a firm intention to make an offer for Wood, although the deadline can be extended.
Despite a 33% rise in its share price following confirmation of the Sidara offer, the increase pushed Wood’s market capitalisation to just over £240m, well short of the approximately £1.6bn valuation Sidara had offered last year.
Sidara takeover saga
All three takeover bids from Sidara, also known as Dar Al-Handasah Consultants Shair and Partners, last year came in below a separate takeover bid from US firm Apollo in 2023.
Wood has been the subject of continued takeover speculation in recent years as the company continues to struggle financially, posting a £754 million half-year loss in August.
© DC ThomsonWood chief executive Ken Gilmartin has said he is “disappointed” with the company’s finances as he continues efforts to sell off parts of the business and write down contracts to improve profitability.
In another blow, last week the company’s chief financial officer Arvind Balan resigned from his position with immediate effect over incorrect credentials.
He left before Wood was able to confirm the results of an investigation of its books following write-offs of large scale contracts. The shock announcement of the review in November prompted another share price collapse for the beleaguered energy services group.
Despite the financial troubles, Wood has continued to secure significant contract win in recent months, including a $120m contract extension with Shell UK.
Who is Sidara?
Formerly known as Dar Group, the company rebranded to Sidara in December 2023 to coincide with the COP28 conference in Dubai.
Jordanian businessman Kamal Al-Shair founded the company as Dar Al-Handasah in Lebanon in 1956 alongside three engineering colleagues at the American University of Beirut.
The firm gradually expanded operations in the Middle East and North Africa in the 60s and 70s, and made its first acquisition of US firm Perkins & Will in 1986.
Sidara expanded in to the UK with the acquisition of Penspen in London in 1990.
According to its website, Sidara now operates in 60 countries with close to 20,500 employees across 308 offices and 21 group companies.
The firm posted $2.8bn in revenues in 2023, and is privately owned with around 44 shareholders.
In the UK, Sidara is working on projects including the EET Hydrogen Hub near Liverpool and the Humber low carbon industrial cluster project.
Internationally, Sidara is also working on large scale projects including the New Administrative Capital in Egypt and expansions to airports in Jeddah, Saudi Arabia, and Shanghai, China.
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