Engineering consultancy John Wood Group has seen a potential takeover offer reduced by 5p per share after the prospective buyer completed its due diligence review.
Sidara, the Middle Eastern engineering firm Dar Al-Handasah Consultants Shair and Partners Holdings, initially proposed acquiring Wood for 35p per share in April.
The FT reported in July that Sidara were considering reducing its offer price amid an FCA investigation into Wood Group’s finances.
Sidara is clearly in a position of strength with Wood Group in disarray, and following its assessment of Wood’s finances, Sidara has now cut this to 30p per share in a written notice to Wood’s board on Saturday.
Wood Group shares were suspended at 18p.
Despite the reduction, Wood’s directors said they would still be minded to recommend the deal to shareholders, subject to agreeing on final terms and conditions.
Wood Group said that substantial progress has been made since their last update in July, including reaching commercial alignment with both Sidara and its lenders on refinancing terms and progress towards publishing its 2024 annual accounts
Sidara now has a deadline of 5pm on 28 August 2025 to make an offer or walk away, though this can be extended further with Wood’s agreement and Takeover panel consent.