Embattled Wood Group enters takeover talks with UAE’s Sidara

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Once the story of the big homegrown of the UK’s northern sea was the Wood Group, the Embetled Oil Services and Engineering Agency, the United Arab Emirates -based company entered into a discussion with Cedar over possible acquisition.

Sidara, which has gone away from one The attempt of techover before According to the close of the discussion, in August last year, in recent weeks, the price of wood shares has created a new view.

The talks were underway on Monday morning but it is possible that no agreement will end, the people said.

Wood’s shares increased by 12 percent since the Financial Times Cedar’s interest on Monday.

Increasing the group capital of the group more than $ 200 million is still a fraction of about $ 1.6 billion cedar in less than a year ago.

This year shares have been submerged over 50 percent between questions about the administration of the Aberodine-based operator and heavy debt burden.

Personally held Network Sedara of Engineering and Design Companies operated from the UAE, was eager to move quickly to ensure that it could hold senior and mid-ranking Wood According to the people with the knowledge of the discussion, the workers are angry with the company’s plight and bonus. People did not reveal the terms of the possible agreement.

A spokesman for Wood declined to comment. Sidara immediately responded to any request for the comment.

The price of the operator has raised questions in the jolt of wooden shares, which is synonymous with the development of the northern sea of ​​the UK and Sir Ian Wood, one of the richest men in Scotland.

The Engineering rival is a valuable company of more than $ 5 billion during £ 2.2bn Techover time AMEC Foster Wheeler in 2017, This month said that an independent review has discovered the “material” weaknesses in its business financial and administrative culture.

Chief Executive Ken Gilmartin said at the time that he was “disappointed” and would see the selling resources to increase the cash flow.

By October of the following year, it has faced about $ 1.4 billion dollars in various debt facilities, and its share price has increased a large equity extremely challenging.

Wood’s chief financial officer Arvind Balan last week, Resignation FT is short -lived to the company with the question of the chartered accountancy qualification he claimed. Balan admits that he made his qualifications mistakenly.

His departure has been associated with a crisis surrounded by a city that is already rising within the UK government’s block over the decreasing output from the North Sea, one of the largest employers in Odin.

According to the two familiar with the discussion, Wood has searched for his consultant forces, including the possible breakup of the business led by the sale.

People have said that the annual income of the business can pay it more than $ 1 billion, it is now sufficient for parents to understand the debt of the parents that an equity raising will be challenging.

However, the choice of the board has been selling the company intact, two people familiar with the discussion, the cedar is in the pole.

Sidara was formerly known as Dar al-Handsah, which was established in 76.

Private Equity Farm Apollo, which tried to buy wood for $ 2.2 billion in 2021, according to close people of the company, cannot be expected to follow the rival bid this time.

Edinburgh Simian Kerr Additional Report and Alexandra Cure in London