Takeover deadline extended for Scottish giant employing 6,000 UK and North Sea workers

Wood Group, the Aberdeen-headquartered engineering services heavyweight, has been granted more time to allow Dubai-based suitor Sidara to come up with a firm offer.

The company, which employs more than 6,000 people in the UK, including about 4,500 supporting North Sea operations in Scotland, said Sidara - a privately held network of engineering and design companies run from the United Arab Emirates - now has until April 17 to make an offer or walk away under City takeover rules. The previous so-called “put up or shut up” deadline had been set for after market close on Monday.

The move follows Wood’s confirmation last month that Sidara had returned for a second takeover tilt less than a year after walking away from a deal.

Wood Group, the Aberdeen-headquartered FTSE-250 energy and engineering services business, employs more than 35,000 people globally and is involved in a wide range of projects.

Sidara abandoned a deal last August, blaming global market turmoil and geopolitical risks, having put forward four takeover proposals - the last valuing Wood Group at some £1.56 billion.

Sidara’s decision to abandon a deal last summer sent Wood Group’s shares plunging, dealing a blow to investors who have suffered a languishing share price and a number of failed takeover attempts for the FTSE 250 company.

Bid interest from Sidara comes after a failed private equity attempt to take over the Scots firm in 2023. Apollo made an approach worth £1.68bn, or 240p per share, to buy Wood after a series of previous approaches were rejected, but eventually abandoned plans to make a firm offer.

Wood Group operates across 60 countries and has about 35,000 staff in total, and carries out engineering and consulting work on oil rigs, among other things.

Russ Mould, investment director at AJ Bell, noted: “Investors continue to keep their fingers crossed that Wood Group will be acquired for a premium. The bearer of much bad news in recent months, Wood Group’s share price has been like a slinky slowly dropping down the stairs.

“That hasn’t stopped certain opportunistic investors from betting on the company being taken private at a higher price than its shares currently trade. News that Sidara has been given more time to conduct due diligence gave the stock a bump, but there is no guarantee a firm deal can be reached.”