The board at Wood has said it is “minded to recommend” the new, lower bid to its shareholders.

Sidara has revised its “possible offer” down to 30p per share, valuing Wood at approximately £207.6 million. This is a significant reduction from the 35p per share offer, worth around £242m, that was first proposed in April. The price cut follows the completion of Sidara’s due diligence process.

The revised bid comes as Wood grapples with a Financial Conduct Authority investigation into its delayed 2024 accounts and governance practices. An independent review by Deloitte recently identified “weaknesses and failures” in the company’s financial culture and controls. This follows what Wood described as a “difficult” and “disappointing” financial year.

The current valuation is a stark contrast to seven years ago, when the firm was valued at more than £5 billion.

Despite its recent difficulties, Wood’s fundamentals remain strong, with the company recently increasing its order book to £5bn. Sidara has also made substantial progress by reaching an agreement on refinancing terms with Wood’s key lenders.

A firm deadline has now been set. Sidara must announce a firm intention to make an offer by 5pm on Thursday, 28 August, or walk away, unless an extension is agreed upon with the Takeover Panel.

In an official statement, Wood emphasised that “there continues to be no certainty that an offer will be made”.