Wood Group has come a step closer to becoming the latest company to leave the London Stock Exchange, after the board of the British oil services company said it was minded to accept a reduced takeover offer from a Dubai-based suitor.
Sidara, the Middle Eastern engineering company Dar Al-Handasah Consultants Shair and Partner Holdings, initially proposed a 35p a share offer in April.
However, on Tuesday the company said that having completed due diligence Sidara would make a lower offer of 30p a share, once remaining preconditions had been met.
The FTSE 250-listed company said it had evaluated the new offer with its financial advisers and concluded that it was “at a value the board would be minded to recommend to shareholders”.
As a result the deadline for Sidara to announce a firm intention or withdraw its offer has been extended, again, to 5pm on 28 August.
Last month, it was reported that Sidara was considering reducing its offer price after the UK’s Financial Conduct Authority launched an investigation into Wood Group’s finances.
In March, Wood Group admitted that its financial results needed to be restated after a review found “cultural failings” led to information being withheld from its auditors.
On Tuesday, Wood Group said it was continuing to work with auditors on the publication of the company’s accounts for last year.
Sidara has made a number of attempts to buy the Aberdeen-based engineering and consultancy company, which employs 35,000 people.
Last year, the company made a 230p a share offer, valuing Wood Group at £1.58bn, but pulled out months later citing “rising geopolitical risks and financial market uncertainty”.
Wood Group’s shares were suspended at the start of May, when they were trading at 18p, down from highs of almost 880p less than a decade ago.
Nearly two years ago, Wood rejected a series of bids from the US fund manager Apollo Global Management, whose final proposal offered 240p a share, or £1.7bn.
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The probable takeover of Wood Group would be the latest blow to London’s beleaguered stock market.
In June, the online payments company Wise said it would move its main share listing to the US.
Last year, the construction equipment rental company Ashtead announced it would move its primary listing to the US, following companies such as the gambling group Flutter Entertainment and the building materials provider CRH.
The drugmaker Indivior has also said it planned to cancel the secondary listing it had retained in London after switching its main stock listing to the US last year.
Metal investment company Cobalt Holdings scrapped its move to list in London, which was expected to have raised about $230m (£170m).