LONDON (dpa-AFX) - John Wood Group PLC (WDGJF), a provider of project, engineering, and technical services, on Friday announced that its subsidiary, JWG Investments Ltd., has agreed to sell its 50% stake in RWG (Repair & Overhauls) Ltd. to joint venture partner Siemens Energy Global GmbH & Co. KG (ENR.DE) for $135 million in cash.
The deal is expected to close in late 2025 or early 2026 with a long stop date of January 25, 2027.
The company plans to use the net proceeds to reduce debt and will retain for general corporate purposes.
The acquisition is aimed at supporting its non-core asset disposal program and contributing to the $150 to $ 200 million in proceeds targeted for 2025.
John Wood identified RWG as non-core during its portfolio review and is selling its 50% stake as part of a broader strategy to streamline operations and focus on growth priorities.
John Wood accounts for its 50% stake in RWG as a joint arrangement using the equity method, reporting it under Turbines joint ventures within its Investment Services unit.
In adjusted results, RWG's proportional contribution is included in all key metrics except revenue, and John Wood also receives an annual management charge of around $9 million from RWG.
Post-transaction, Wood will no longer recognize its RWG shareholding, receive dividends, or the $9 million annual management charge, but will benefit from the net cash proceeds.
While full financial impacts will be disclosed after the full-year audit, no material effect on Wood's continuing operations is expected, as RWG is managed separately.
Siemens Energy is currently trading 0.82% lesser at EUR 96.36 on the XETRA.
John Wood is currently trading 1.76% lesser at 18.44 pence on the London Stock Exchange.
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