Takeover proposal by Wood Group may lead to delisting apprehensions
The potential acquisition of Wood Group by Middle Eastern-based privately owned company, Sidara, is moving forward with commercial alignment reached on the headline terms of the proposed refinancing between the two parties and Wood's lenders.
The deadline for Sidara to make a firm offer has been extended to 5 pm on August 25, 2025. During this period, the Wood Group board will continue to work with Sidara on the pre-conditions to the possible offer, and it is likely that they will recommend the takeover if a firm offer is made [1][5][4].
The proposed takeover has raised concerns about Wood Group's potential delisting from the London Stock Exchange, as Sidara is a privately owned company based in the Middle East [2][4]. This would mark another potential delisting from the London Stock Exchange, following a trend of foreign giants swooping on British bargains, as analysts cite the undervaluing of UK stocks [8].
Recent months have seen Wood Group struggle, with delays in publishing its financial results for 2024 after withholding information from auditors, and a bruising start to the year [7]. These issues may have led Sidara to consider lowering its offer price, although no firm revised offer has been confirmed yet [3].
In an effort to strengthen its financial position, the refinancing strategy between Wood Group and Sidara aims to extend Wood's debt maturities. As part of this strategy, Sidara will provide $250m in new funding to Wood [6].
The potential takeover comes as the UK Financial Conduct Authority's chief executive, Nikhil Rathi, warned last month that UK companies have become increasingly attractive, particularly to US buyers [9].
If the takeover goes ahead, it will be subject to the approval of Wood Group's shareholders and the relevant regulatory bodies. The offer is yet to become official, and Sidara has until August 25, 2025, to make a formal offer of acquisition.
Wood Group is using a legal process in Scotland, known as a scheme of arrangement, which allows it to make changes to its debt, even if some creditors do not approve [10]. This process is common in complex restructurings and will be crucial in the potential takeover by Sidara.
[1] Wood Group likely to recommend Sidara takeover [2] Wood Group takeover by Sidara could lead to delisting [3] Sidara may lower offer price due to regulatory probes and account filing delays [4] Wood Group and Sidara agree on refinancing terms [5] Wood Group board continues to work with Sidara on pre-conditions [6] Sidara to provide $250m in funding as part of refinancing strategy [7] Wood Group's bruising start to the year [8] Foreign giants swoop on British bargains [9] UK companies increasingly attractive to US buyers [10] Wood Group to use scheme of arrangement in potential takeover
- The potential acquisition of Wood Group by Sidara, a privately owned Middle Eastern company, could have implications for the finance and business industry, as it may lead to Wood's delisting from the London Stock Exchange.
- As part of the proposed takeover, Sidara plans to invest $250m in new funding, a move that aims to strengthen Wood Group's financial position in the markets.
- The ongoing strategic alignment between Wood Group and Sidara involves discussions about the pre-conditions for the possible takeover, which could potentially influence the stock markets, given the buyout's potential impact on UK stocks.
