Wood Group and Dubai energy consultancy Sidara have indicated that they are close to agreeing a takeover of the Aberdeen-based energy services company.

Talks have been extended again – to 25 August – after Wood said there is now “commercial alignment on the headline terms of the proposed refinancing in connection with the possible offer”.

However, discussions with Wood’s lenders are on-going in order to secure support for any deal.

Dar Al-Handasah Consultants Shair and Partners Holdings, trading as Sidara, approached Wood on 14 April with a possible offer of 35p per share.

Wood said it would be minded to recommend such an offer to Wood’s shareholders. Last week it emerged that Dubai-based Sidara may be looking to lower that price in view of the inquiries around Wood’s accounting.

The Financial Conduct Authority is investigating its affairs on the back of the Deloitte review on previous filing of yearly figures.

Today the board of Wood said it is continuing to work with Sidara in relation to the pre-conditions to the possible offer.

There is now commercial alignment on the debt facilities required, although not all lenders have engaged with the company in relation to the proposed refinancing. Wood is working to secure support from all lenders.

It is expected that the proposed refinancing would be implemented in part via a Scottish scheme of arrangement of John Wood Group Holdings. That means the creditor scheme must be approved by a majority in number and 75% by value of committed lenders present and voting at the creditor meetings, which is expected to be achieved based on discussions to date with the lenders.

Wood is continuing to work with its auditor in relation to the publication of Wood’s audited accounts for the financial year ended 31 December 2024.

In the meantime, Wood has announced that Paul O’Donnell has joined the company as a non-executive director from today.

A Fellow of Chartered Accountants Ireland, he has significant experience as a board director at companies including Nordic Aviation Capital, EnerMech, The Very Group and TalkTalk. He has over 25 years of M&A and business transformation experience, serving as an advisor to public and private companies, as well as financial investors, and was previously a managing director at Blackstone Advisory Partners.