Close approach towards Sidara takeover, potential delisting of Wood Group from London Stock Exchange
Sidara's Takeover of John Wood Group Remains in Negotiation
As the deadline for Sidara’s takeover offer for John Wood Group approaches, the deal remains uncertain but is progressing amid complex refinancing negotiations and financial challenges.
Deadline Extension
John Wood Group has extended the deadline for Sidara’s firm takeover offer for the sixth time, reflecting ongoing discussions and attempts to finalize terms. The current firm deadline is August 25, 2025 [1][3][5].
Offer Price Adjustments
Sidara has previously withdrawn higher bids around 230p per share (£1.58 billion) citing geopolitical risks but is now reportedly offering a much lower valuation, approximately 35p per share (~£242 million), which Wood’s board sees as more attractive under current conditions [2][3].
Refinancing Deal
John Wood and Sidara have agreed on headline refinancing terms, including an extension of committed loans to October 2028 and new bonding facilities. However, not all lenders have fully committed, leading Wood to consider fallback options like a Scottish scheme of arrangement to bind dissenting creditors [1][3].
Regulatory Investigation
The Financial Conduct Authority (FCA) is investigating John Wood Group regarding material weaknesses in financial controls and accounting issues that came to light in a Deloitte review covering January 2023 to November 2024. This regulatory inquiry adds pressure and scrutiny during the takeover process [2][4].
Board Changes
Amid these challenges, the chairman of John Wood Group has announced plans to step down [2].
Potential Outcome
If Sidara proceeds with a formal offer by August 25 and the terms are accepted, Wood Group is poised to recommend the takeover. If not, the company retains a "stable platform arrangement" for alternative refinancing, maintaining operational stability [1][5].
Other Factors
- Wood Group dropped out of the FTSE 250 in March.
- Debt facilities would be extended to October 2028 under the deal.
- Sidara relaunched efforts to acquire Wood Group in February.
- Wood Group shares remain suspended due to delays in publishing its full year results.
- Sidara is considering cutting its takeover offer price due to the financial regulator's investigation into the firm withholding information from its auditors.
- The FCA launched a probe into Wood Group covering early 2023 up to November last year.
Background
Sidara, founded as Dar al-Handasah in Lebanon in 1956, is a network of engineering and design companies employing about 21,500 people with a specialist focus on large-scale building projects [6]. Private equity giant Apollo Global Management made four proposals to purchase Wood Group in 2023, with a final offer of 240p per share, before the company walked away without explanation [2]. Wood Group had previously rejected a bid from Sidara in May 2024 for 205 pence per share [2].
[1] The Telegraph: Wood Group takeover talks with Sidara extended for sixth time [2] The Guardian: Wood Group takeover talks with Sidara extended as FCA launches probe [3] BBC News: Wood Group takeover talks with Sidara extended for sixth time [4] Reuters: FCA launches probe into Wood Group over accounting issues [5] Sky News: Wood Group in talks with Sidara over refinancing plans [6] Sidara's official website: About Sidara
- As the complex negotiations for Sidara's takeover of John Wood Group continue, investors are keeping a close eye on the situation, as the deal's outcome may impact the finance and business sectors.
- With Sidara proposing a much lower valuation in their recent takeover offer, the business strategy of John Wood Group could significantly shift if the takeover proceeds, impacting both their operations and financial investments.
