Engineering and consulting company John Wood Group has said it is engaging with Sidara after the Dubai-based rival submitted a fourth and “final” bid for the FTSE 250 firm.
Sidara offered 230p per share for the firm last week – a near 52 per cent premium to Wood’s closing share price on 29 April, before the company made its first bid.
Wood Group has rejected the previous three offers for the firm, arguing they significantly undervalued the group. It said last week, however, it was “evaluating” Sidara’s latest proposal with its financial advisers.
While Sidara said previously that Wood Group had not engaged with it since it made its first offer for the company, Wood Group said that had changed.
“Having now weighed all relevant factors including, in particular, feedback received from Wood shareholders, the Board has decided to engage with Sidara to determine if a firm offer can be made on the same financial terms as the final proposal,” the firm said in a statement today, referring to the 230p per share offer.
Following a request from Wood Group, the UK Takeover Panel has extended the ‘put up or shut up’ deadline, by which Sidara must announce a firm offer for the company, to July 3.
The company said the deadline could be further extended with the consent of the panel.
Wood provides consultation, management and engineering services for the oil and mining sector, with operations in more than 60 countries. The company employs around 6,500 people in the UK, most of whom are based in Aberdeen.