Aberdeen-headquartered engineering firm Wood Group has rejected a third bid from Dubai-based firm Sidara.

The improved offer was 220p per share (totaling £1.52bn), an increase of 3.8% from the previous proposal of 212 per share, which itself was up 3.4% on the first bid of 205p per share.

The offer, submitted on Tuesday, "continued to significantly undervalue the Group and its prospects", according to a statement posted by Wood this morning (Friday).

It read: "On 21 May 2024 the Board of Wood ("the Board") received a third unsolicited, preliminary and conditional proposal from Dar Al-Handasah Consultants Shair and Partners Holdings Ltd ("Sidara") for a cash offer of 220 pence per Wood share (the "Third Proposal").

"The Board, together with its financial advisers, carefully considered the Third Proposal, in particular, in the context of the Board's view of the fundamental prospects of Wood, and concluded that it continued to significantly undervalue the Group and its prospects. Accordingly, the Board unanimously rejected the Third Proposal on 23 May 2024.

"There can be no certainty either that an offer will be made or as to the terms on which any offer might be made. Further announcements will be made as appropriate."

Sidara has until 5pm on June 5 to announce a firm intention to make an offer for Wood or walk away.

Who is Sidara?

The Lebanese-founded design and engineering business rebranded to its new name last year.

It's reported that it sold down a $1.4bn (£1.12bn) stake in Australian engineering services group Worley in April, to prepare to approach Wood.

The company, founded in 1956, generates about half of its $2.3bn (£1.84bn) revenue in the US and was believed to have been interested in Wood as a channel to grow that further through new oil and gas projects and renewable energy.

Around a quarter of Wood's revenue last year was accounted for in the US.

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