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Wood Group, a company for oil and an engineering company that was once a big story about success in the UK, has entered into talks with Sidar about the potential takeover of the United Arab Emirates.
Sidar, who was moving away from an earlier attempt to take over In August last year, he made a fresh approach after the collapse of the Wood shares in recent weeks, according to two people close to discussions.
The conversations were ongoing on Monday morning, but it is possible that they will not be concluded, people said.
Wood’s shares rose on Monday by 12 percent after the Financial Times reported about the interest of Sidar.
Increasing the market capitalization of the group to just over £ 200m is still a fraction of approximately £ 1.6 billion, which Sidar offered less than a year ago.
The shares have fallen more than 50 percent in the midst of a issue of management and a heavy debt of debt based in Aberdeen this year.
Sidar, a private network of engineering and designer-leading companies from UAE, wanted to start quickly to ensure that she could retain older and medium ranking Wood The staff that made it angry about the company’s condition and its decision to reduce the bonus, according to people who know about conversations. People have not discovered the conditions of a potential job.
Wood spokesman refused to comment. Sidara did not immediately respond to the commentary request.
The Slump in Wood’s price price asked questions about the future of the operator, who is synonymous with the development of the UK in the North Sea and the wealth of one of Scotland’s richest people, Sir Ian Wood.
Company, worth more than £ 5 billion, at a time of £ 2.2 billion to take over the engineer rival Amec Foster-Wheeler in 2017, He said this month that an independent review discovered “material” weaknesses in financial and management culture in his project business.
CEO Ken Gilmartin said at the time that he was “disappointed” and to seek to sell property to increase the cash flow.
By October next year, he was facing about $ 1.4 billion in various debt plants, and collapse at the price of shares made a large capital increased extremely challenging.
Last week Wood’s Chief Financial Director, Arvind Balan, stepped down Shortly after FT addressed a company with questions about the truth of his qualifications for rented accounting. Balan admitted that he misplaced his qualifications.
His departure added a sense of the crisis around the company that is one of the largest employers in Aberdeen, a city that has already declined under the rejection of production from the North Sea and the British Bloc of the Government of the UK on future developments.
Wood explored other potential opportunities, including a possible termination of a job that was conducted by selling a consulting hand, according to two people familiar with conversations.
People said that the company’s annual revenues could appreciate more than £ 1 billion pounds, enough for the right -wing registry company in the home company’s load now that the capital increase would be challenging.
But the advantage of the committee is to sell the company untouched, two people familiarize with the conversations said, putting anchors in a position.
Sidara was previously known as the Dar al-Handasah, which was founded in 1956.
Private capital company Apollo, which tried to buy Wood for £ 2.2 billion 2023, is not expected to look for a rival offer this time, according to people who are close to a company.
Additional reporting Simeon Kerra in Edinburgh and Alexandra Heal in London
