SHARES in John Wood Group soared on Wednesday to their highest level in a year after the engineering services firm rejected a takeover offer from Dubai-based rival Sidara.

The FTSE 250 company said in stock market filing that it received Sidara's all-share proposal last Tuesday, valuing the Scottish firm at more than £1.4bn, or 205p per share. The proposal represented a more than 35.5 per cent premium to Wood's stock price at the time of the offer.

It said the board concluded that the offer "fundamentally undervalued Wood and its future prospects" and rejected it.

An earlier a report on Sidara's bid from Bloomberg News on Wednesday sent Wood's shares up as much as 26 per cent.

Under rules from the Panel on Takeovers and Mergers, Sidara now has until 5pm on 5 June to announce a firm intention on whether or not it will make another offer.

Prior to the news, Wood's shares had fallen around 25 per cent over the last 12 months, prompting Sparta Capital Management to recommend it explore a US listing or sale. The London-based hedge fund is understood to be a topten shareholder in Wood.

Last year, Wood mulled five successive takeover bids from Apollo, with the US private equity giant eventually walking away after a final £1.68bn, or 240p per share, offer last April.

The news comes as a string of foreign firms pounce on the weak valuations of many London-listed names in comparison to their US counterparts, with the total value of exits from the London Stock Exchange surpassing £60bn this year as others opt to delist or flee to stock markets overseas.

Wood provides consultation, management and engineering services for the oil and mining sector, with operations in more than 60 countries. The company currently employs around 6,500 people in the UK, most of whom are based in Aberdeen.

The firm has focused more heavily on its sustainable business in recent times, which helps companies with decarbonisation and the energy transition.

Shares in the group closed up 16.91 per cent.

Wood Group shares jumped on Wednesday 16.91%

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