Latest news with #Sidara
The Herald Scotland
a day ago
- Business
- The Herald Scotland
Deadline for Wood takeover offer postponed for sixth time
The arrangement would include a longer duration for Wood to repay its existing debts via an extension to October 2028, plus an initial cash injection of $250m from Sidara. However, a number of Wood's lenders have yet to agree to the proposal. Read more: Wood said it is working to secure 100% support but in the absence of this it could use a legal process known as a scheme of arrangement, which only requires approval from a majority of creditors representing 75% of outstanding debt. Meanwhile, it has been reported that Sidara is considering reducing the price of its takeover offer following the launch of an investigation by the Financial Conduct Authority (FCA) after an independent review found "cultural failings" with accounting practices at Wood. The nature of the FCA enquiry has not been disclosed, though it covers the period from January 1, 2023 to November 7, 2024. The previous independent review by Deloitte found "material weaknesses and failures" within Wood's projects business and its engagement with the group finance team. This has led to a delay in the publication of Wood's financial accounts for 2024, which were due at the end of April. Wood said it is continuing to work with its auditor to publish those accounts. Read more: Against this backdrop, Wood and Sidara have asked for and received from the Takeover Panel a sixth extension to the "put up or shut up" deadline by which Abu Dhabi-based Sidara must make a firm offer. This will expire at 5pm on August 25. Sidara made its first approach for Wood in May of last year. The Scottish company rejected the initial offer for 205p per share, saying it "fundamentally undervalued Wood and its future prospects". Sidara continued to make advances but in August 2024 withdrew its fourth bid for 230p per share, which valued the company at approximately £1.5 billion, citing "rising geopolitical risks" and broader uncertainty across financial markets. Shares in Wood plummeted thereafter with the company eventually losing its spot in the FTSE 250 index of London mid-caps. Read more: Following the delay in the publication of Wood's 2024 financial accounts, the company's shares were suspended from trading on the London Stock Exchange on May 1 of this year. The remain suspended at 18.44p each. In a separate announcement this morning, Wood also said that it has appointed Paul O'Donnell as a non-executive director of the company. Wood chairman Roy Franklin said Mr O'Donnell, a fellow of Chartered Accountants Ireland, has significant experience of "helping companies navigate similar challenges to those Wood faces today". Mr O'Donnell is described as having more than 25 years' experience of mergers, acquisitions and business transformation, and has previously served on the boards of companies such as Nordic Aviation Capital, The Very Group, and TalkTalk.
Daily Mail
a day ago
- Business
- Daily Mail
Wood Group moves closer to Sidara takeover which would see it delist from London
John Wood Group has further extended the deadline for potential buyer Sidara to make a firm takeover offer for the company. Sidara has until 5pm on 25 August to make a concrete offer, or to announce that it doesn't intend to do so. The North Sea-focused oilfield services provider, which employers some 35,000 people across 60 countries, had already extended the deadline several times, with Sidara previously having until 28 July to make an offer. In April, Wood Group said it 'would be minded' to recommend Sidara's conditional proposal to pay £242million, or 35 pence per share, for the company if Sidara makes a firm offer. The deal would include a $450million capital injection for the Aberdeen-based firm. It would also mark another big delisting from the London Stock Exchange. The firm said there is commercial alignment on the headline terms of refinancing between Sidara and Wood's lenders. It added that the proposed refinancing is conditional on Sidara making an offer, and that offer being approved by shareholders. Debt facilities would be extended to October 2028 under the deal. Sidara is considering cutting its takeover offer price as a result of the financial regulator's investigation into the firm withholding information from its auditors, the Financial Times reported. The Dubai-based firm previously attempted to acquire Wood Group in May 2024 for 205 pence per share, which Wood Group rejected. It later offered £1.58billion, or 230 pence per share, before pulling out of deal in August last year due to 'rising geopolitical risks and financial market uncertainty'. Sidara relaunched efforts to acquire Wood Group in February. Private equity giant Apollo Global Management tried to purchase the firm in 2023, making four proposals, including a final offer of 240p per share, before the Wood Group walked away without explanation. Last month the Financial Conduct Authority launched a probe into Wood Group covering early 2023 up to November last year. In an independent review, Deloitte found 'material weaknesses and failures' in the financial culture of its projects business. Deloitte added: 'The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors.' Wood Group shares remain suspended due to delays in publishing its full year results, the firm dropped out of the FTSE 250 in March. Founded as Dar al-Handasah in Lebanon in 1956, Sidara is a network of engineering and design companies employing about 21,500 people with a specialist focus on large-scale building projects.
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Embattled Wood sells RWG as financial probe continues
'As previously announced, our disposal programme of non-core businesses is part of our strategy to simplify Wood and help mitigate the impact of negative free cash flow in the year," Mr Gilmartin said, adding that it marks a "significant milestone" for the company. Read more: Wood is currently working with its auditors to publish the company's delayed annual accounts for 2024 following the announcement in June that the Financial Conduct Authority (FCA) has launched an investigation after an independent review found "cultural failings" with accounting practices at Wood. The Aberdeen-based group has said it is cooperating fully with that investigation. The investigation covers the period from January 1, 2023 to November 7, 2024. Because of the delay in publishing last year's accounts, the Takeover Panel agreed at the end of June to grant an extension to the deadline by which Sidara, which has been weighing up an acquisition offer for Wood, must "put up or shut up". Read more: The deadline for Abu Dhabi-based Sidara to make a firm offer has been extended multiple times since its latest approach in February. Sidara scrapped a £1.5 billion bid to buy Wood in August of last year citing concerns about geopolitical risks and financial market uncertainty. Last year's mooted takeover offer of 230p per share has fallen dramatically to a possible 35p per share that now values the group at £240m, along with a potential $450m capital injection into the business. Sidara has until 5pm Monday to make a firm offer, but given the difficulties it faces in establishing a valuation for Wood, that deadline could be extended again. Wood employs roughly 35,000 people world-wide including approximately 4,500 people at its [[Aberdeen]] headquarters and across its North Sea operations. Proceeds from the sale of RWG will be used to reduce Wood's net debt. The group's last set of published accounts released in August and covering the six months to the end of June 2024 showed net debt up by a third to $876m, and an operating loss of $899m.
Zawya
5 days ago
- Business
- Zawya
Dubai's Sidara weighs lowering Wood Group offer after UK regulator's probe, FT reports
Dubai-based Sidara is considering reducing the price of its takeover bid for Wood Group, as Britain's financial regulator has launched a probe into the oilfield services provider, the Financial Times reported on Thursday. It is not clear by how much Sidara might reduce the price, the report said. The company is concerned about legal exposure that could emerge from the Financial Conduct Authority's investigation into Wood Group, the report said, citing people familiar with the matter. The probe, disclosed in June, had begun following Wood Group's announcement last year of an independent accounting review related to some contracts and charges. Sidara is frustrated about the time it is taking Wood to file its accounts for 2024, according to the FT report. Reuters could not immediately verify the report. Sidara and Wood Group declined to comment. In April, the British oilfield services and engineering company had received a proposal from Sidara comprising a takeover bid worth about 242 million pounds ($328.54 million) and up to $450 million in cash. Sidara has until July 28 to make a firm offer, walk away or get an extension. ($1 = 0.7366 pounds)
Reuters
6 days ago
- Business
- Reuters
Dubai's Sidara weighs lowering Wood Group offer after UK regulator's probe, FT reports
July 24 (Reuters) - Dubai-based Sidara is considering reducing the price of its takeover bid for Wood Group (WG.L), opens new tab, as Britain's financial watchdog has launched a probe into the oilfield services provider, the Financial Times reported on Thursday, citing people familiar with the matter. It is not clear by how much Sidara might reduce the price, the report said, adding that the company is concerned about legal exposure that could emerge from the Financial Conduct Authority's investigation into Wood Group. The probe, which was disclosed last month, had begun following Wood Group's announcement last year of an independent accounting review related to some contracts and charges. Sidara is frustrated about the time it is taking Wood to file its accounts for 2024, according to the report. Reuters could not immediately verify the report. Sidara and Wood Group did not immediately respond to a Reuters request for comment. In April, the British oilfield services and engineering company had received a proposal from Sidara comprising a takeover bid worth about 242 million pounds ($328.54 million) and up to $450 million in cash. Sidara has until July 28 to make a firm offer, walk away or get an extension. ($1 = 0.7366 pounds)
