Wood Group’s board has indicated it is “minded to recommend” the potential offer to its shareholders, should a formal bid be made on the proposed terms. The board believes this represents the “better option” for shareholders and other stakeholders.

The firm has shared that the non-binding conditional proposal from Sidara, comprises:

• a possible offer of 35 pence per Wood share in cash to acquire the entire issued and to be issued share capital of the company;
• a possible capital injection of $450 million (c. £342m) from Sidara to Wood; and
• Wood seeking an extension of, and certain other amendments to, its existing committed debt facilities.

This renewed approach comes nearly a year after previous takeover discussions between the two companies collapsed. Wood Group’s share value, which had declined following the failure of the earlier talks, increased by approximately 10% after the announcement of the latest bid. Discussions between the firms had officially restarted in February 2025.   

AJ Bell investment director Russ Mould, commented: “Once a big success story in the UK energy industry, Wood Group looks set to succumb to a pretty sorry end, although shareholders may be only too willing to draw a line at this point given the company’s recent struggles.

“The shares recently traded at all-time lows after it was forced to delay results as an independent probe found key financial information had been withheld from auditors.

“This was expected to result in material adjustments to previous financial statements and its balance sheet. The latest in a litany of disasters does not seem to have dissuaded erstwhile suitor, Dubai-based Sidara, which has put forward a 35p per share proposal.

“This feels very small beer compared with the 230p on the table before Sidara walked away from a deal last summer but beggars cannot be choosers and such is Wood Group’s perilous position it has little choice but to accept what is on offer, particularly given Sidara is pitching a potential capital injection as part of the agreement. Wood Group rather forlornly says it is looking at alternative refinancing options but the fact it is minded to recommend a firm offer if it is forthcoming is telling.

“The whole saga is a reminder that so-called ‘transformational’ acquisitions more often destroy than create value as Wood Group’s problems can largely be traced back to its combination with Amec Foster Wheeler in 2017.”