John Wood Group Takeover Costs Soar as Sidara Lowers Bid

The takeover saga involving the UK’s John Wood Group by Dubai-based conglomerate Sidara has seen both parties incur advisory fees exceeding £100 million, as prolonged negotiations and financial hurdles continue to weigh on the proposed deal. The acquisition, now more uncertain than ever, has been subject to multiple extensions and mounting costs as the two sides work to bring the troubled oilfield engineer under new ownership.

Documents related to the £216 million acquisition reveal Wood Group expects to spend £74.3 million on specialist advice, including £36.2 million for financial advisers, £32.5 million for legal work, £5 million for professional services and £600,000 for public relations. Sidara’s own tally includes $32 million for financial and corporate broking, $21.1 million for legal fees, and further costs for accounting, tax, and communications. Prestigious names such as Goldman Sachs International, Greenhill, and Allen Overy Shearman Sterling have featured prominently in Sidara’s camp, while Wood Group has engaged advisers from Europa Partners, Rothschild, JP Morgan Cazenove, and Morgan Stanley, with Slaughter and May and Burness Paull handling legal aspects.

The latest bid stands at 30p per share—a significant drop from the 35p original offer and a fraction of the £1.6 billion valuation Wood Group commanded during the initial wave of takeover interest in 2023, including an approach from Apollo Global Management. Shares in the company have been suspended since May after Wood failed to publish audited accounts, following an independent review which revealed financial governance issues. The review now also threatens to force restatements for the 2022 and 2023 accounts.

The circular made clear that the deal hinges upon publication of Wood’s audited accounts for 2024 by the end of October, with the risk of collapse if this deadline is missed. The company, which operates in more than 60 countries and employs 35,000 people, is also deep in debt refinancing discussions required to settle the details of any transaction. Without a successful buyout, the board has cautioned it may have to raise fresh equity or pursue further asset disposals—moves that, according to company documents, would result in far less, or potentially no, value for shareholders compared with Sidara’s proposal.

The drawn-out takeover process and spiralling adviser fees underscore the challenges faced by both buyer and seller in bringing the deal to the finish line. The mounting costs and risk of deal failure reflect the broader instability currently characterising the oilfield engineering segment, particularly among companies wrestling with governance, refinancing, and shifting market values.