Wood Group receives £242m takeover offer from Dubai firm year after £1.5bn bid

Troubled engineering firm John Wood Group has received a fresh takeover bid from Dubai-based suitor Sidara.

Aberdeen-headquartered Wood Group said Sidara – a privately held network of engineering and design companies run from the United Arab Emirates – has now put forward a non-binding conditional offer of 35p per share to buy Wood.

The offer, which would also include a potential 450m dollar (£342m) cash injection into Wood, would value the company at around £242m.

It comes almost a year after talks around a previous £1.56bn takeover approach from Sidara collapsed.

However, the firm’s share value has tumbled in the months since, particularly after recent updates highlighted potential governance failings and need for Wood to restate its accounts.

The Scottish firm’s bosses said they would “be minded to recommend” the latest takeover deal.

Wood said it has continued to assess other potential refinancing options alongside holding talks with Sidara regarding the potential takeover.

In February, Wood confirmed it had restarted takeover talks with its UAE-based rival, before extending discussions last month.

On Monday, the company said: “The board of Wood believes that the company needs to have a more sustainable capital structure, and this requires substantial new capital in order to diversify Wood’s financing sources and reduce its indebtedness over time.

“Work continues on a range of alternative refinancing options.

“However, 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 for Wood’s shareholders, creditors and other stakeholders.”