Dubai-based Sidara has been given extra time to negotiate a potential takeover of North Sea engineer Wood Group.
Sidara made a fresh approach for Aberdeen-based Wood Group late last month, with the engineer looking to buy the FTSE 250 firm at a major discount to its 2024 bid of £1.6billion after a huge share price slump.
Wood told investors on Monday that ‘discussions are continuing’ and Sidara will now have until 5pm on 17 April to make a firm intention to make an offer or walk away.
The firm said in a short statement: ‘A further announcement will be made in due course.
‘In the meantime, shareholders are not required to take any action in relation to the possible offer.’
Wood Group shares opened 7.4 per cent higher at 41.42p in early trading, having been propelled more than 55 per cent higher over the last month in the wake of Sidara’s latest approach.
Wood Group shares are more than 95 per cent below a July 2013 peak of 901.5p
But shares in Wood have endured a torrid few years and remain almost 40 per cent down for the year, hampered by profit warnings and deteriorating performance.
Wood appointed Deloitte last November to conduct an independent review of its operations following major write-offs to large-scale projects.
The business told investors it was undertaking steps to ‘strengthen significantly’ its financial culture, governance and controls, while slashing costs and selling off some assets.
Wood was dealt a fresh flow in February after its chief financial officer suddenly resigned after admitting to providing an incorrect description of his qualifications.
Wood Group shares have fallen more than 70 per cent over the last 12 months and are more than 95 per cent below a July 2013 peak of 901.5p
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