Engineering giant Wood receives £242m takeover bid

One of Scotland’s largest companies – engineering giant Wood Group – has received a £242m takeover approach.

Aberdeen-headquartered Wood said Sidara, an engineering and consultancy based in Dubai, had made the offer.

Wood’s board of directors said they would be “minded to recommend” the deal.

The company grew from the North Sea oil boom to become a global engineering contractor, operating in dozens of countries, with tens of thousands of workers.

The new proposed deal comes almost a year after talks around a previous takeover approach from Sidara collapsed.

Wood’s share value has since fallen.

However, it was up about 10% after the announcement of the latest takeover bid.

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

On Monday, the company said: “The board of Wood currently believes that the possible offer represents the better option for Wood’s shareholders, creditors and other stakeholders.

“The board of Wood has indicated to Sidara that, should an offer be made on the terms set out, it would be minded to recommend the offer to Wood’s shareholders, subject to agreement of the full terms and conditions.”

In 2012, Sir Ian Wood announced he was retiring from his role as chairman of Wood Group.

The well-known businessman had been chairman of the company since 1982.

Sir Ian said at the time: “I have been lucky enough to participate in the very successful and exciting growth of the UK’s oil and gas industry over the last 45 years and seen Wood Group become a successful global player.

“I will miss Wood Group, but will have the satisfaction of knowing it’s in really good hands and look forward to the Group’s continuing success.”