John Wood Group (LON: WG.) extended gains on Tuesday after the company confirmed it had received a takeover approach from Sidara, an engineering firm that previously walked away from acquisition talks last year.
In response to media speculation, Wood stated on Monday that Sidara had made an approach regarding a possible offer but stressed that there was no certainty a bid would materialise.
Under UK takeover rules, Sidara has until 24 March 2025 to make a firm offer or walk away.
Wood’s share price surged over 41% in Monday’s session and has so far climbed a further 7% on Tuesday, reaching an intraday high of 40.49p as investors continue to speculate on a potential deal. Despite the increase, the stock is down 72.9% in the last 12 months.
The latest approach comes after last year’s failed bid when Sidara cited geopolitical risks and market uncertainty as reasons for not proceeding with a formal offer.
The renewed interest in Wood follows a turbulent period for the company. Earlier this month, its shares hit a record low after an independent review uncovered “weaknesses and failures” in its business.
The firm also warned that free cash flow would be wiped out this year due to weaker trading and costs linked to the review.
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