It comes amid an ongoing regulatory probe into the oilfield services provider
John Wood Group has further extended the deadline for potential buyer Sidara to make a firm takeover offer for the company.
Sidara has until 5pm on 25 August to make a concrete offer, or to announce that it doesn’t intend to do so.
The North Sea-focused oilfield services provider, which employers some 35,000 people across 60 countries, had already extended the deadline several times, with Sidara previously having until 28 July to make an offer.
In April, Wood Group said it ‘would be minded’ to recommend Sidara’s conditional proposal to pay £242million, or 35 pence per share, for the company if Sidara makes a firm offer.
The deal would include a $450million capital injection for the Aberdeen-based firm. It would also mark another big delisting from the London Stock Exchange.
Last month the Financial Conduct Authority launched a probe into Wood Group covering early 2023 up to November last year
The firm said there is commercial alignment on the headline terms of refinancing between Sidara and Wood’s lenders. It added that the proposed refinancing is conditional on Sidara making an offer, and that offer being approved by shareholders.
Debt facilities would be extended to October 2028 under the deal.
Sidara is considering cutting its takeover offer price as a result of the financial regulator’s investigation into the firm withholding information from its auditors, the Financial Times reported.
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The Dubai-based firm previously attempted to acquire Wood Group in May 2024 for 205 pence per share, which Wood Group rejected.
It later offered £1.58billion, or 230 pence per share, before pulling out of deal in August last year due to ‘rising geopolitical risks and financial market uncertainty’.
Sidara relaunched efforts to acquire Wood Group in February.
Private equity giant Apollo Global Management tried to purchase the firm in 2023, making four proposals, including a final offer of 240p per share, before the Wood Group walked away without explanation.
Last month the Financial Conduct Authority launched a probe into Wood Group covering early 2023 up to November last year.
In an independent review, Deloitte found ‘material weaknesses and failures’ in the financial culture of its projects business.
Deloitte added: ‘The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood’s auditors.’
Wood Group shares remain suspended due to delays in publishing its full year results, the firm dropped out of the FTSE 250 in March.
Founded as Dar al-Handasah in Lebanon in 1956, Sidara is a network of engineering and design companies employing about 21,500 people with a specialist focus on large-scale building projects.
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