Shares in John Wood Group PLC (LSE:WG.) jumped 30% on Monday after the company confirmed it had received a fresh takeover approach from Dubai-based Sidara.
It comes at a turbulent time for the engineering and oil services firm, which has been struggling with weaker-than-expected financial performance and a sharp decline in its share price, which is down almost 50% in the year to date and tanked 74% in the past six months.
Sidara had previously pursued a deal last year but withdrew, citing geopolitical risks and market uncertainty. Now, with Wood’s valuation significantly lower, Sidara appears to be testing the waters once again.
Earlier this month, Wood warned that its fourth-quarter results would be weaker than expected. The company also forecast negative free cash flow for 2025, raising concerns among investors.
Wood’s board acknowledged Sidara’s latest approach but stressed that there is no guarantee a formal bid will be made. Shareholders have been advised to take no action at this stage.
Under UK takeover rules, Sidara has until March 24 to either make a firm bid or walk away. The deadline can be extended with regulatory approval.
For now, talks are ongoing, but sources told the Financial Times that a deal remains uncertain.
In afternoon trading, the stock was up 8.3p at 34.7p.