Troubled Aberdeen-based engineering and consulting giant John Wood Group said on Friday the UK’s Financial Conduct Authority (FCA) has commenced an investigation into the company covering the period from January 1, 2023, to November 7, 2024.
Wood, one of Scotland’s biggest listed firms, employs more than 35,000 people in 60 countries.
Wood said in a stock exchange statement: “Following the independent review first announced by John Wood Group plc on 7 November 2024, the company has been notified by the Financial Conduct Authority of its commencement of an investigation into the company covering the period from 1 January 2023 to 7 November 2024.
“The company will cooperate fully with the FCA in relation to this investigation.”
On June 12, Wood extended the deadline for Dubai-based Sidara to make a firm takeover offer for Wood or walk away until June 30.
On April 14, Wood received a “holistic non-binding” conditional takeover proposal from Sidara worth about £242 million or 35p per share in cash.
Last year, Wood rejected a cash takeover proposal from Sidara worth about £1.4 billion or £2.05 per share, before the Aberdeen firm became engulfed in problems.
On April 30 this year Wood said its shares would be temporarily suspended from listing and from trading on the main market of the London Stock Exchange with effect from 7:30am on May 1, 2025, until its FY24 results are published.
Wood Group shares had fallen almost 90% in the past year amid an independent review by Deloitte following “exceptional contract write-offs” and a “difficult” trading update for the year ended December 31, 2024.