Aberdeen firm Wood has seen its share price soar by more than 14% after receiving a fresh takeover bid.
The engineering firm has received a non-binding proposal from Dubai-based group Dar Al-Handasah, known as Sidara.
The deal would be worth 35p per share – around £242 million in total.
It would also see a further £340m injected into Wood after Sidara confirmed it made “significant progress” with due diligence.
Wood’s share price rose from Friday’s closing price of 25p per share to 28.4p per share on Monday morning.
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In February, Wood revealed it had received a new approach by Sidara to buy the group.
And in March, it extended its deadline until April 17 for Sidara to announce its intentions.
Now, the board of Wood said work is ongoing on a range of alternative options to provide a sustainable long-term structure.
However, it believes the possible Sidara offer “represents the better option” for its shareholders.
A spokesman for Wood said: “The proposed combination of Wood and Sidara would create a leading global engineering consulting company, with enhanced scale, capability and diversification.
“By bringing together Wood’s deep domain experience with Sidara’s specialist strengths in energy and materials, the combined business would be well-positioned to lead and grow in these attractive global markets.”
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Sidara made a £1.6 billion approach in August last year. However, it said the prospective takeover was off “in light of rising geopolitical risks and financial market uncertainty”.
Wood said Sidara’s long-term strategic commitment can enhance Wood’s “established market-leading position”
It also believes if the offer gets the go-ahead it could create opportunities for “sustainable, scalable growth”.
The spokesman added: “For Wood’s employees, the combination would offer opportunities across a global network of brands.
“Sidara fully recognises the value of Wood’s talent. If an offer is made which completes, Sidara intends to support Wood in taking actions to retain and support employees to ensure business continuity.
“Together, Sidara and Wood would build a stronger, more resilient company, well positioned to continue delivering for clients, creating opportunities for employees and holding a world-leading position in the global energy and materials markets.”
The Aberdeen firm said shareholders are not yet required to take any action in relation to the possible offer.
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