John Wood Group has received a new acquisition offer valued at £242m from UAE-based Sidara.

The engineering firm said that if a formal offer was proposed by the Dubai company, its board would be "minded" to recommend it to its shareholders.

The offer comprises a share price of 35 pence and a possible £342.6m capital injection from Sidara

However, Sidara told Wood that it must seek an "extension of, and certain other amendments" to its existing debt facilities.

The offer comes after Sidara made an offer for Wood last year, valued at £1.59bn, but withdrew the deal due to "geopolitical risks and financial market uncertainty".

As a result, Wood Group saw its operating costs fall from a profit of £17.7m in the first half of 2023 to a loss of £691m in the same period in 2024.

However, talks of a potential deal were resurrected last month after Wood agreed to extend the deadline for its engagements with Sidara over a new offer.

Investment director at AJ Bell, Russ Mould, said that it looks as though the firm is "set to succumb to a pretty sorry end", although shareholders may be "too willing to draw a line at this point given the company’s recent struggles".

He added: "The shares recently traded at all-time lows after it was forced to delay results as an independent probe found key financial information had been withheld from auditors.

"This was expected to result in material adjustments to previous financial statements and its balance sheet. The latest in a litany of disasters does not seem to have dissuaded erstwhile suitor, Dubai-based Sidara, which has put forward a 35 pence per share proposal.

"This feels very small beer compared with the 230 pence on the table before Sidara walked away from a deal last summer but beggars cannot be choosers and such is Wood Group’s perilous position it has little choice but to accept what is on offer, particularly given Sidara is pitching a potential capital injection as part of the agreement. Wood Group rather forlornly says it is looking at alternative refinancing options but the fact it is minded to recommend a firm offer if it is forthcoming is telling."

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