Wood Group receives enhanced takeover offer of US$ from Dubai’s Sidara

One of Scotland’s largest oilfield services and engineering company Wood Group has received a proposal from Dubai-based engineering and consulting firm Sidara comprising a takeover bid worth about US$318.4 million and up to US$450 million in cash.

Sidara’s proposal is just before the April 17 deadline for the firm to make a formal bid after the parties resumed deal discussions in February.

The Aberdeen-based company said it would be “minded to recommend” a firm offer on such terms to its shareholders, if made.

Sidara dropped its initial plans to buy the group last year, citing rising geopolitical risks and uncertainty in the financial market. Wood has also rejected multiple previous bids from Sidara.

The climate for deals has been made more uncertain by the turmoil in financial markets and fears of a recession sparked by US President Donald Trump’s tariffs.

Wood Group said recently it continued to assess refinancing options after in February saying it faced another year of negative cash flow.

“Having carefully considered the viability of these options together with its financial advisers, the board of Wood currently believes that the possible offer represents the better option,” the company said in a statement.

Following a turbulent few years – with pressure from activist investors to pursue a sale and failed takeover attempts – Wood Group last month said it had identified issues within its projects unit following an independent review.

It also said it sought an extension of its debt facilities, and that Sidara had made “significant progress” with its due diligence.