#UAE’s Sidara considers lowering Wood Group bid after UK regulator’s probe

UAE’s Sidara considers lowering Wood Group bid after UK regulator’s probe

Sidara is exploring cutting the price of its takeover offer for Wood Group given the probe into the engineering services company by Britain’s financial regulator. 

The UAE-based group is concerned about legal exposure that could emerge from the Financial Conduct Authority’s investigation into Aberdeen-based Wood, which was announced last month, according to people familiar with the matter. 

Sidara made a non-binding conditional proposal in April to buy the crisis-hit company for £242mn, or 35 pence a share, and has until July 28 to make a firm offer, walk away or get an extension. The deadline has already been extended several times. 

It is not clear by how much Sidara might reduce the price, if it does make a firm offer. The privately held group, which comprises a network of engineering and design companies, is also frustrated about the time it is taking Wood to file its accounts for 2024, people familiar with the matter said. 

Wood’s shares have been suspended since April because of the delay in publishing the accounts. Sidara has made publication of the accounts a condition of any firm offer. 

Any reduction in the price of the potential takeover would be a further blow for Wood, which handles oil and gas as well as mining projects around the world, led by chief executive Ken Gilmartin and chair Roy Franklin. 

The board said in April it would be minded to recommend to shareholders Sidara’s £242mn takeover, which includes the UAE buyer possibly injecting $450mn into the company. 

The company rejected several far higher proposals from Sidara last year, arguing they undervalued the company before the UAE group eventually walked away from a £1.5bn offer. Wood’s share price has subsequently plummeted amid regular bad news. 

The FCA investigation, which Wood announced in June, covers the period from January 1 2023 to November 7 2024 and follows an independent review by Deloitte. 

Wood commissioned the review into its projects division last year after “dialogue” with its auditor KPMG. It said in March that following the review it had uncovered “material weaknesses and failures in the group’s financial culture”. 

These included “inappropriate management pressure and override to maintain previously reported positions” and “information being inappropriately withheld from, and unreliable information being provided to, Wood’s auditors”. 

Wood has said it will need to restate accounts for 2022 and 2023 in the wake of the Deloitte review. 

At the time of suspension of its shares, Wood’s market capitalisation was £127mn, down from a peak of £5.3bn in 2018. 

The company expanded rapidly in 2017 when it paid £2.2bn for rival Amec Foster Wheeler, but has since struggled with high debts and low cash flow. 

Wood and Sidara declined to comment.

#Dubai's Emirates NBD shares fall as tax, lower recoveries hit half-year profit | Reuters

Dubai's Emirates NBD shares fall as tax, lower recoveries hit half-year profit | Reuters

Emirates NBD's (ENBD.DU), opens new tab shares slipped on Thursday after Dubai's biggest bank by assets reported a 9% fall in first-half net profit, as lower recoveries and a higher tax rate impacted the lender's results.

The bank posted a net profit of 12.5 billion dirhams ($3.40 billion) in the six months to June 30, down from 13.8 billion over the same period in 2024.

Shares in the bank were down 1.9% at 0615 GMT.

The stock remains up 21% since the start of the year.

ENBD, majority-owned by Dubai's government, said recoveries in the first half of 2025 were down by 2 billion dirhams, which compared with "very strong recoveries" last year, the bank said in a statement.

UAE banks have been benefiting from steady economic growth, rising demand for credit and government-driven investment in non-oil sectors in recent years.

In Dubai, the Gulf's tourism and financial hub, a business-friendly environment has attracted a slew of companies and high-net-worth clients, contributing to a spike in real estate prices.

However, ENBD said on Thursday that while in the first half, "property transactions in Dubai were higher compared with 2024", price growth "is moderating."

Ratings agency Fitch expects a correction in real estate prices in the second half and in 2026, as new builds come to the market, it said in May.

ENBD's total assets reached 1.09 trillion dirhams as of end-June, up 17% from a year earlier, with both net interest income and non-funded income rising by double digits.

The bank's total gross loans rose 12% to 570 billion dirhams in the first six months, with nearly half of the increase coming from international operations.

They were outpaced by deposits, which grew 18% to 737 billion dirhams.

Its net interest margin dropped to 3.47% at the end of June, its lowest since 2022, impacted in the second quarter by a rate hike in Turkey, where ENBD operates through its unit DenizBank.

Gulf stocks mixed as investors eye earnings, U.S. trade talks | Reuters

Gulf stocks mixed as investors eye earnings, U.S. trade talks | Reuters

Gulf stocks were mixed in choppy trading on Thursday as investors weighed a raft of corporate earnings while focusing on U.S. trade negotiations ahead of a looming tariff deadline.

While recent developments, including Washington's deal with Tokyo to lower tariffs on Japanese imports and signs of potential agreement with the European Union, appeared constructive, market participants remained cautious, awaiting clarity on the direction of global trade policy.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, marking its second consecutive weekly loss, pressured by persistently weaker oil prices, despite a recent rebound, with index heavyweight Al Rajhi Bank (1120.SE), opens new tab losing 0.7%, and the oil behemoth Saudi Aramco (2222.SE), opens new tab falling 0.2%.

The Saudi market may continue to face pressure due to relatively low oil prices, despite the rebound. However, though a broadly positive earnings season could help the market regain ground, said Samer Hasn, senior market analyst at XS.com.

Dubai's main share index (.DFMGI), opens new tab rose 0.4% to a fresh 17-1/2-year high, as real estate gains offset early losses sparked by an over 2% drop in Emirates NBD (ENBD.DU), opens new tab following a 9% decline in first-half profit, dragging financial stocks lower and making the sector the worst performer on the day.

The Abu Dhabi index (.FTFADGI), opens new tab held steady amid mixed trading in heavyweight stocks ahead of key upcoming earnings, consolidating gains following Wednesday's strong recovery.

Samer added that both the UAE markets are poised for potential gains, supported by a largely positive earnings season so far.

Qatar stock index (.QSI), opens new tab advanced 0.3%, extended its winning streak to six sessions, rising 0.3% to a fresh two-and-a-half-year peak, driven by solid earnings reports mainly from the banking sector this week.

Market participants are awaiting next week's earnings from other sectors, which could bolster the market's upward momentum, Samer noted.

Egypt's stock market was closed on account of Republic Day.