Dubai-based Sidara has launched a fresh bid to buy Wood Group - less than a year after walking away from a deal.
The Aberdeen-headquartered engineering consultancy said it had received an approach from Sidara, sending beleaguered shares rebounding by more than 33% in afternoon trading on Monday.
FTSE 250-listed Wood, which provides oilfield and engineering services, has seen its shares fall by 80% over the past year, giving it a stock market value of just over £200million, significantly lower than the £1.6billion approach made by Sidara last year.
At the time, Sidara said the prospective takeover was off “in light of rising geopolitical risks and financial market uncertainty”.
Under stock market rules, Sidara is obliged to announce a firm intention to make an offer by March 24.
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.
Bumpy 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.
Wood Group’s shares dipped in November after announcing Deloitte had been drafted in to conduct an independent review of its accounts.
Bosses said this month that the review had shown it needed to improve its culture and controls in the light of “identified weaknesses and failures”, while Deloitte’s findings also suggested profits from Wood Group’s projects division may have been overstated in 2023 and prior years.
Wood Group also confirmed last week that its chief financial officer had resigned after admitting he incorrectly claimed to be a chartered accountant.
Arvind Balan, who joined last April, said: “Regrettably, I made an honest oversight with respect to the description of my professional qualification as a chartered accountant instead of a certified practicing accountant.”