John Wood Group has edged closer to a takeover by Sidara, after requesting an extension on the date by which the Dubai-based engineering and consulting company is required to make a firm intention for an acquisition or withdraw its offer.

The board at the British engineering firm said it is continuing to work with Sidara in relation to the pre-conditions of the proposal set out on 14 April, which was valued at £242m.

This followed a previous £1.59bn offer which was withdrawn due to "geopolitical risks".

Wood Group said that following constructive engagement with its lenders, there is now commercial alignment on the headline terms of an extension to its existing committed debt facilities. This is expected to involve an extension of its committed debt facilities to October and enter into new committed bonding facilities.

If implemented, the proposed refinancing would be conditional on Sidara making a firm offer.

Under the extension, Sidara will have until 25 August to make a formal offer for Wood Group.

Should the deal go ahead, Wood Group would become the latest of several firms to delist from the London Stock Exchange.

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