Wood Group shareholders have backed a takeover offer from Dubai-based Sidara, drawing a line under years of turbulence for the engineering giant.
At a meeting held in Aberdeen – with online participation – 89% of votes supported Sidara’s 30p-a-share bid, valuing the business at around £207million.
The offer marks a collapse of roughly 95% from Wood’s 2018 peak valuation of £5.3 billion.
Wood Group said it was “pleased” with the outcome of the vote, though the deal remains subject to regulatory approvals.
The group, which employs around 35,000 people across more than 60 countries, has faced years of financial pressure following its £2.2bn acquisition of Amec Foster Wheeler in 2017. High debts, cash burn and accounting failures have weighed heavily on performance.
Sidara had previously attempted to acquire Wood at a significantly higher valuation. Directors agreed to engage at 230p a share in June 2024, but Sidara walked away two months later citing “geopolitical risks and financial market uncertainty”, triggering a sharp fall in the share price.
Confidence fell further in March when an independent review uncovered “failures” in the company’s financial culture, including information being withheld from auditors.
UK regulators launched an investigation in June, and delays to financial reporting saw trading in the shares suspended on May 1.
Trading resumed this month after Wood published its 2024 accounts, showing a $2.7bn pre-tax loss from continuing operations – including a $2.2bn goodwill and intangible asset impairment.
Sidara returned in August with a 35p-a-share approach, later cut to 30p.
Recommending the deal in August, Wood’s directors warned that alternatives would “likely generate materially less, and potentially zero, value for shareholders”.