Wood to ‘engage’ with Sidara on £1.59bn takeover move

Wood Group HQ, Aberdeen

John Wood Group plc, the Aberdeen-based engineering and consulting giant, said on Wednesday that after feedback from shareholders it “has decided to engage” with Dubai-based firm Sidara, which on May 29 made “a fourth and final” cash takeover proposal for Wood.

The proposal of £2.30 per share would value Wood Group at about £1.59bn, representing a premium of 52% to its closing share price before the first bid was made.

Wood shares rose 3% at around £1.86.

Wood, one of Scotland’s biggest listed firms, employs more than 35,000 people in 60 countries.

The Aberdeen firm said: “The board remains confident in Wood’s strategic direction and its fundamental prospects.

“However, having now weighed all relevant factors including, in particular, feedback received from Wood shareholders, the board has decided to engage with Sidara to determine if a firm offer can be made on the same financial terms as the final proposal.

“Accordingly, the board will grant Sidara access to due diligence materials …

“There can be no certainty that an offer will be made. Further announcements will be made as appropriate.”