According to deal documents, Wood Group is projected to spend £74.3m on advice, while its suitor Sidara anticipates costs of around £45m. The combined total highlights the complexity of the protracted negotiations, which have required multiple extensions from the takeover panel since Sidara’s interest was formalised in April.

The proposed deal, which would see Sidara purchase the Aberdeen-headquartered firm for £216m, or 30p per share, is a fraction of the £1.6 billion valuation Wood Group attracted from other interested parties in 2023.

However, the transaction is contingent on Wood Group publishing its audited 2024 accounts by the end of October. The company’s shares have been suspended since May after it failed to produce its accounts, following the discovery of significant financial governance problems. This is expected to lead to the restatement of its 2022 and 2023 results.

Wood Group’s advisory bill includes an estimated £36.2m for financial advice from firms including Europa Partners and Rothschild, and £32.5m for legal counsel led by Slaughter and May. Sidara’s costs include payments to financial advisers Goldman Sachs and Greenhill, and law firm Allen Overy Shearman Sterling, The Times reports.

The deal circular warns that if the takeover fails, Wood Group will need to explore alternatives such as an equity raise or further asset sales. These scenarios would likely “generate materially less, and potentially zero, value for shareholders” compared with the Sidara offer.