Embattled Wood Group enters takeover talks with UAE’s Sidara

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Wood Group, an oil and engineering services company whose evaluation decreased to less than 200 million pounds this month, has entered acquisitions with the United Arab Emirates, which approached a proposal for a purchase of 1.6 billion pounds last year.

Sidara, which moved away from Try to acquire earlier Last August, it took a new approach after collapsing in the price of Wood in recent weeks, according to two people close to discussions.

The people said that the talks on the future of Wood – as soon as the great local success story for the development of the North Sea in the United Kingdom – was continuing on Monday morning, but it was not possible to conclude a deal.

Wood shares rose by up to 33 percent on Monday after informing the Financial Times times for the Cedara interest.

The increase in the group’s market value prompted a little more than 240 million pounds, still a small part of about 1.6 billion pounds, Sidara offered less than a year ago.

The shares decreased by more than 60 percent earlier this month amid questions about the governance of the operator, headquartered and heavy debts.

Sidara, a private network of engineering and design companies that operate from the United Arab Emirates, was keen to move quickly to ensure that the elderly and the middle of the League are kept. wood The employees who were angry with the company’s ordeal and its decision to cut off the rewards, according to people who have knowledge of conversations. People did not reveal the conditions of the potential deal.

In the aftermath of the FT report, Wood confirmed that it had received an approach from Sidara on a possible offer for the entire group, adding that a certainty will not be made.

Under the acquisition of the UK’s acquisition, Sidara until March 24 to announce a strong intention to provide bidding or away.

Sidara did not immediately respond to a request for comment.

The decrease in the price of Wood raised questions about the future of the operator, which grew up from a family fishing company under Sir Ian Wood, and turned it into one of the richest men in Scotland.

He left the group in 2012 after selling the majority of his family’s shares and is estimated to retain a wealth of more than one billion pounds.

The company, whose value is estimated at more than 5 billion pounds at about 2.2 billion pounds from the engineering competitor Amec Foster-Wheler in 2017, This month this month said that an independent review discovered “material” weaknesses in the culture of finance and governance in its business.

CEO Ken Gilmertin said at the time that he “is disappointed” and will look forward to selling assets to increase the cash flow.

By October next year, the expiration of about $ 1.4 billion in various debt facilities has been facing, and the collapse of its share price has made a significant increase in a significant challenge.

Last week, the financial manager of Wood, Arvind Balan, Stem After admitting to hide his professional qualifications.

He added his departure to the crisis facing Wood, one of the largest employers in Aberdeen, a city that is already reeling from the decline in the production of the North Sea and the UK government bloc on future hydrocarbon developments.

Wood explored other options, including a potential disintegration of the work led by the sale of her advisory arm, according to two people familiar with the conversations.

People said that the consulting work can be valued at more than one billion pounds, which is enough for the size of the parents ’debts now after increasing the shares is difficult.

But the preference of the Board of Directors is to sell the entire company. Two people are aware of the conversations, and they put Sidara in the position of pole.

Ciara was previously known as Handsah House, which was founded in 1956.

The APOLLO private stock company, which tried to buy wood for 2.2 billion pounds in 2023, will follow a competitive offer this time, according to people close to the company.

Wood, who employs 35,000 worldwide, is one of a handful of oil services companies capable of dealing with wide projects preferred by the largest multinationals.

With the exception of BP and Shell-Steplet Multinationals already established before the UK developed the North Sea-Wood was one of the few local groups in the sector that continued to develop a global imprint.

Participated in additional reports from Simeon Kerr in Edinburgh and Alexandra Hill in London