Dubai investor Sidara has trimmed its takeover offer for Scotland’s John Wood Group to 30 pence per share, cutting the total valuation to roughly £208 million. The revised price replaces its earlier 35p-a-share proposal from April, reflecting additional findings uncovered during recent due diligence.
Sidara informed Wood’s board over the weekend that it remains committed to pursuing the acquisition under the new terms. The investor reiterated that its refinancing plan, central to its initial £242 million approach, remains intact, with key funding partners ready to back the deal.
The price reduction follows the UK Financial Conduct Authority’s formal probe into Wood’s accounting practices. Earlier this year, Wood delayed publishing its 2024 audited results after Deloitte flagged “material weaknesses” in project accounting and internal controls. The regulatory inquiry has intensified buyer caution, prompting Sidara to adjust its valuation.
Wood’s directors have held detailed discussions with their financial advisers and indicated they would be “minded to recommend” the lower bid if Sidara proceeds with a firm offer. The board emphasized that satisfying outstanding conditions, especially the release of audited accounts, remains essential before a binding offer can be launched.
Regulatory deadlines have also shifted. The UK Takeover Panel granted Sidara until August 28 to either declare a firm intention or withdraw its proposal. Wood’s shares have stayed suspended on the London Stock Exchange since May, following the delayed results and the announcement of an internal accounting review.
Wood’s stock has collapsed by more than 70 percent this year as contract write-downs and the accounting controversy weighed heavily on investor confidence.
Analysts note that securing board backing for the lower valuation is critical to avoiding a protracted bidding process and further pressure on Wood’s market capitalisation. At the same time, Sidara must navigate potential legal exposure tied to the FCA investigation before moving forward.
If approved, the deal would mark Sidara’s entry into Europe’s oilfield services sector and provide Wood with crucial backing to complete its financial restructuring. A successful transaction could restore market trust and set the stage for a turnaround in Wood’s operations.
