London-listed engineering and consulting firm Wood Group said it is likely to recommend a takeover by Middle Eastern-based privately owned company Sidara sparking another potential delisting from the London Stock Exchange.
Wood announced on Monday that Sidara, previously known as Dar Al-Handasah, had shown interest in purchasing the group through a 35p per share proposal, as reported by City AM.
The bid has yet to become formal, with Sidara granted until 25th August 2025 to submit an official acquisition offer.
Should the buyout proceed, it would represent another damaging departure from the London Stock Exchange.
Recent months have witnessed overseas giants target British bargains, as analysts highlighted the undervaluation of UK equities.
Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), cautioned last month: “There is this question around how attractive UK companies have become, particularly to US buyers.”
Wood’s bruising start to year
To enable the potential acquisition, Wood Group and Sidara are advancing a refinancing approach under their “commercial alignment,” which seeks to extend Wood’s debt maturities and bolster its financial standing.
The arrangement encompasses granting Wood an extended timeframe to repay existing debts – through prolonging them until 2028 – and supplying $250m in fresh funding from Sidara.
However, several of Wood’s creditors have yet to consent to the proposal despite key elements of the plan being resolved. Wood has indicated that without complete backing it would employ a legal mechanism in Scotland, referred to as a scheme of arrangement, which permits it to alter its debt structure, even if certain creditors object.
The proposal remains preliminary and non-binding, though Wood’s board has suggested they would likely endorse it to shareholders should all conditions be finalised.
Wood Group’s share price surged following Sidara’s £242m takeover approach in April.
The company climbed more than 13 per cent as it recovered ground after a dismal beginning to the year.
A Deloitte examination in February identified “material weakness and failures” throughout Wood’s operations, and the firm has postponed releasing its 2024 financial results after information was concealed from auditors.
Sidara announced in April that it had achieved substantial advancement in its due diligence assessment of Wood, including regarding the issues highlighted in the review, according to a London Stock Exchange filing.
Wood Group was demoted from the FTSE 250 index in March 2025.
