Wood Group (LON: WG) has requested a deadline extension in order to consider a “final offer” bid from its Dubai-based suitor, Sidara.
In a statement, the Aberdeen-headquartered firm said it has “decided to engage” with Dubai-based engineering and consulting firm after it made a fourth offer for the company at the end of May.
The May 29 proposal from Sidara for a cash offer of 230 pence apiece would value Wood Group at about £1.59bn, representing a premium of 52% to its closing share price before the first bid was made.
The decision comes after the Middle East firm initiated its wooing of Wood at the start of May.
The Aberdeen firm rejected the initial unsolicited takeover offer of 205 pence per Wood share as it “fundamentally undervalued” the group.
On Wednesday, Wood asked the Takeover Panel to extend a deadline for Sidara, also known as Dar Al-Handasah Consultants Shair and Partners, to confirm an offer.
Under UK takeover rules known as “put up or shut up” (PUSU), bidder need to announce a fully financed binding offer within 28 days, or confirm it will not be making an offer in which event it is subject to a 6-month standstill.
Wood said “it remains confident in Wood’s strategic direction and its fundamental prospects.
“However, 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.
“Accordingly, the board will grant Sidara access to due diligence materials.”
A new deadline has been set for 5pm on 3 July. This can be further extended by the board of Wood, with the consent of the panel.
All recent offers from Wood’s rival Sidara have come in below a separate takeover bid from US venture capital firm Apollo.
After a series of attempts, Apollo walked away from its final £1.66bn offer in May last year, which had valued the Aberdeen company at 240p per share.
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