John Wood Group’s board has said that it would be "minded to recommend" Sidara’s reduced 30 pence per share acquisition offer.

The update comes after the British engineering firm received a commitment in writing from the UAE-based company on 23 August about making an offer to acquire the firm.

Last month, Wood requested an extension to the date by which Sidara was required to make a firm intention for the company.

Sidara had previously made a £1.59bn offer for Wood, but this was withdrawn in August last year due to geopolitical reasons.

The firm then made an offer for £242m, which valued the firm at 35 pence per share in April.

In its latest update, Wood said there is now "commercial alignment" with Sidara and Wood’s lenders on the detailed terms of the proposed refinancing.

Sidara has also carried out due diligence on Wood in this time and the British firm is continuing to work with its auditor in relation to the publication of its 2024 accounts.

The UAE-based firm now has until 5pm on 28 August to make an offer for Wood or withdraw. In the meantime, Wood has told its shareholders not to take any action in regard to the offer.

Investment director at AJ Bell, Russ Mould, said that Sidara may have "found more skeletons in the closet" following its due diligence process.

He concluded: "This had been flagged as a possibility earlier this summer, after the financial regulator started a probe into the business, but it is testament to Wood’s weak negotiating position and, arguably its inability to continue as an independent entity, that it is recommending this lower bid.

"It marks quite the fall from grace for the company and provides yet another illustration of the harm so-called ‘transformational’ acquisitions can do. Before it acquired fellow energy services name Amec Foster Wheeler in 2017 it was trading close to 900p. It now looks like being put out of its misery at 30p – a spectacular destruction of value.

"Today’s news also brings into stark relief the decision to reject much higher bids from Sidara last year. Wood has gone from being a real UK plc success story to a cautionary tale."

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