Wood Group And Siemens To Form Joint Venture - Quick Facts

(RTTNews) - John Wood Group Plc (WDGJF.PK, WG.L), an energy services company, and Siemens AG (SI), Wednesday said they agreed to form a joint venture comprising Maintenance and Power Solutions businesses of Wood Group GTS, and TurboCare business unit of Siemens.

The shareholding of the joint venture will be split as 51 percent for Wood Group, and 49 percent for Seimens. Wood Group now expects that an additional payment of up to about $70 million will be due from the joint venture.

Wood Group's business excludes Rolls Wood Group, TransCanada Turbines and Sulzer Wood joint ventures. Seimens TurboCare business unit provides aftermarket gas turbine, steam turbine and generator design, repair and manufacturing services.

The completion of the deal is anticipated in the first quarter of 2014. On completion, all Wood Group's predominantly opex related gas turbine activities will be in joint ventures and will be reported within the Wood Group PSN division.

Separately, Wood Group confirmed that with respect to the proposed formation of a joint venture with Siemens, Mark Dobler will step down as a director of the Company with immediate effect. Mark will transfer to the new joint venture on its formation, becoming its CEO and, in the interim, will continue as CEO of Wood Group GTS.