Investing.com -- Shares of John Wood Group (LON:WG) surged over 36% on Monday after the company confirmed receiving a fresh takeover approach from Sidara (Dar Al-Handasah Consultants Shair and Partners Holdings Ltd).
The announcement follows media speculation regarding renewed acquisition talks.
In a statement, Wood’s board acknowledged the approach but cautioned that there is no certainty an offer will be made.
“Wood shareholders are advised to take no action in relation to the Proposal,” the company said. Under UK takeover rules, Sidara has until March 24, 2025, to either make a firm bid or walk away, unless an extension is granted by the Takeover Panel.
According to a Financial Times report earlier in the day, sources close to the discussions indicated that Sidara’s renewed interest follows a significant decline in Wood’s share price in recent weeks.
The firm had previously attempted a takeover in August 2024, but those talks ultimately collapsed. While discussions are ongoing, the sources emphasized that there is no guarantee a deal will be reached.
Wood, an engineering and consulting firm specializing in energy and infrastructure, has faced market volatility in recent months, making it a potential acquisition target. Its stock recently tumbled after it forecast negative cash flow for another year.