Acquisitions
Wood Group Extends Deadline for Sidara's Latest Purchase Bid to June 30
Energy services firm Wood Group was awarded a $2.8-billion contract for work at UAE Habshan gas processing megaplant while it awaits a final decision on a new takeover bid by Dubai-based engineer Sidara Group.
Image courtesy of ADNOC Group
U.K.-based energy and industrial services firm Wood Group on June 12 extended to June 30 a deadline for UAE-based engineer Sidara, formerly Dar Group, to make a new firm acquisition offer or end negotiations.
The date is when a waiver of Wood’s lending covenants is due to expire, say media reports sourcing unnamed company managers.
Wood had announced in April a possible Sidara offer valued at about $321 million and a potential $450-million "capital injection."
Wood shares have been suspended from trading since May 1 on the London Stock Exchange as an independent review of its accounting and corporate governance has delayed publication of its year-end 2024 results.
“Wood and Sidara are continuing to engage with Wood's lenders and noteholders in relation to both the Debt Modifications and the Sidara Liquidity Arrangements [the potential capital injection of $450 million],” Wood said in a statement June 12. The firm "is continuing to work with its auditor towards the publication of Wood's audited accounts for the financial year ended 31 December 2024."
But the firm also said recently it won a $2.8-billion EPCM contract from Abu Dhabi-owned ADNOC Gas Ltd. for upgrades to its Habshan gas facility.
Wood anticipates about $400 million of revenue through its services, with project scope to includes substantial upgrades and de-bottlenecking to existing Habshan and Habshan 5 gas processing complexes and pipelines, including brownfield modifications and installation of new facilities.
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Habshan is one of the largest gas process complexes in the world, ADNOC says. The project scope is set to complete at the end of 2027.
Sidara negotiations with Wood Group have been underway since June 2024.
