Oil and gas giant Wood plc sold to Dubai engineering firm

The Wood Group is being sold to Dubai-based Sidara

The Scottish corporate giant that has played a leading role throughout Aberdeens oil and gas era is being taken over.

Aberdeen-based Wood plc has seen its value plummet and was at risk of collapse. It is to become part of Sidara, an international engineering and design firm based in Dubai.

A shareholder vote on Monday backed the takeover offer with 88% of votes cast after months of delay, while Wood struggled to agree its accounts with its auditor.

Those were eventually published on 30 October, showing a pre-tax loss of more than £2bn and evidence that the auditor was still not satisfied with the figures going back several years.

In recommending the offer to shareholders, the board of directors advised that any alternative attempt to refinance the debt-laden company would result in a lower valuation or nothing at all for investors.

At its peak in 2013, Wood reached a market valuation of more than £5bn and employed more than 50,000 people in oilfields around the world.

It is formally known as the John Wood Group, and will return to that branding under Sidara.

Sir Ian Wood, who built up the family firm from its roots in fishing boat repair, retired as chairman 13 years ago.

He then focussed on philanthropy in Africa and Scotland along with co-ordinating support for the wider Aberdeen energy economy and city centre.

In 2017, his former company took over an American rival, AMEC Foster Wheeler, along with its large debt and legacy problems with legal disputes.

Wood sought to diversify, adding to the range of services it provided for oil and gas production, venturing into engineering of refineries, chemical plants, urban design and renewable energy.

However, it suffered from contractual conditions that cost it dear.

Last year, Sidara said it planned to bid £1.6bn to take over the company but then walked away from the deal, citing market uncertainty.

When the Dubai partnership returned earlier this year, it offered a small fraction of last years proposal, later cutting it still further to £216m.

In addition, Sidara has said it will inject $450m (£342m) into Wood.

The company has sold several subsidiaries to raise funds. It recently said it had 35,000 employees in more than 60 countries. Despite its financial problems, its reputation for engineering has continued to win contracts.

The new owner has said it intends to develop the Wood brand as its engineering and materials division.

Its chief executive since 2022, Ken Gilmartin, said he would step down after the deal was approved, to be replaced by Iain Torrens, the chief finance officer.

The Wood chairman since 2019, Roy Franklin, has also said he intends to step down.