Wood Group has sold a business in North America ahead of a likely offer for the group today from its Dubai-based suitor.
The Aberdeen engineering and consultancy company has offloaded North America Transmission & Distribution engineering business to power solutions group Qualus for $110 million.
North America T&D is a provider of power infrastructure engineering for substations, transmission, distribution and renewable generation across Canada and the US.
The deal takes Wood’s proceeds from disposals of non-core operations this year to $275m, ahead of the company’s $150m to $200m target. It is expected to complete in the third or fourth quarter of 2025 and proceeds will be used to reduce net debt and for general corporate purposes.
It comes ahead of today’s extended deadline of 5pm for Middle East company Sidara to confirm a 30p per share offer for Wood, valuing the Scottish company at about £207m. The extension was announced to the market just before last night’s deadline.
Wood has indicated it would be minded to recommend the revised offer, which is 5p per share lower than the proposed price in April.
Sidara, which has completed its due diligence, notified Wood last Saturday that it is committed to making an offer for Wood at the reduced price once remaining pre-conditions have been satisfied.
Wood is continuing to work with its auditor in relation to the publication of its audited accounts for the financial year ended 31 December 2024.
It is anticipated that the impact of the North America transaction on Wood will be disclosed after the completion of the audit. Wood is also subject to a Financial Conduct Authority inquiry. In the meantime, its shares remain suspended from trading.
Commenting on the North America deal, Ken Gilmartin, CEO of Wood, commented: “We are pleased to announce continued progress of our non-core business disposal programme with the sale of North America T&D to Qualus, following a highly competitive sale process.
“This sale, along with the sale of Kelchner and the agreement to divest our interest in RWG, has led to approximately $275 million of disposal proceeds agreed so far this year.
“We are now on track to exceed our previously announced target for disposal proceeds as we continue to simplify our portfolio.”
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