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Wood Group, the oil and oil engineering service company that was once the great story of North Sea home success in the UK, has entered into talks with Sidara for a possible receipt from the united company based on the Emirates Arabic.
Sidara, who left an early attempt to get in August last year, has made a new approach after falling to Wood’s stock price in recent weeks, according to two people close to discussions.
The talks were continuing on Monday morning, but it is possible that no deal will end, people said.
Wood shares increased 12 percent on Monday after Financial Times reported Sidara’s interest.
Increasing group market capitalization to just over £ 200m is still only a portion of approximately 1.6bn Sidara had offered less than a year ago.
Shares have fallen more than 50 percent this year between questions about the governance of the Aberdeen -based operator and heavy debt load.
Sidara, a private network of engineering and design enterprises led by the United Arab Emirates, was inclined to move quickly to ensure that he could carry old and middle -ranging staff, who are angry at the state of the company and its decision to shorten rewards, according to people with knowledge of the talks. People did not reveal the terms of a possible deal.
A spokesman for Wood refused to comment. Sidara did not immediately respond to a comment request.
The decline in Wood’s stock price has raised questions about the future of the operator, which has been synonymous with the development of the United Kingdom of the North Sea and the assets of one of Scotland’s richest men, Sir Ian Wood.
The company, worth more than £ 5 billion about its £ 2.2 billion of engineering rival Amec Foster-Wheeler in 2017, said this month that an independent summary had discovered “Material” weaknesses in financial culture and governance in its business projects
Chief Executive Ken Gilmartin said at the time that he was “disappointed” and would see to sell assets to increase the flow of money.
By October next year, it faces the expiration of about 1.4BN dollars in different debt facilities, and the demolition of its share price has made a large capital growing extremely challenging.
Last week Wood’s leading financial official Arvind Balan withdrew shortly after FT approached the company with questions about the authenticity of his alleged accounting qualification. Balan admitted that he had mistaken his qualifications.
His departure added a sense of crisis about a company that is one of the largest employers in Aberdeen, a city that is already withdrawing under the fall of the North Sea and the UK Government bloc for future hydrocarbons developments.
Wood has explored other possible options, including a possible business separation led by selling his counseling arm, according to two people familiar with the talks.
People said annual business revenues could estimate it more than £ 1 billion, enough to improve the payment load of parent company with the right now that a net capital increase would be challenging.
But board preference is to sell the company intact, two people familiar with the talks said, placing Sidara in the pole position.
Sidara was previously known as Dar Al-Handasah, which was founded in 1956.
The Apollo Private Capital Firm, which tried to buy wood for 2.2bn £ 2023, is not expected to follow a rival offer this time, according to people near the company.
Additional reporting by Simeon Kerr in Edinburgh and Alexandra Heal in London
