Wood Group said on Monday that Dubai's Sidara has made a non-binding conditional takeover proposal valuing the company at 35p per share that it would be minded to recommend.
The proposal also includes a possible capital injection of $450m from Sidara and would require Wood to seek an extension of its existing committed debt facilities.
Wood Group said: "Work continues on a range of alternative refinancing options. However, having carefully considered the viability of these options together with its financial advisers, the board of Wood currently believes that the possible offer represents the better option for Wood's shareholders, creditors and other stakeholders.
"Accordingly, the board of Wood has indicated to Sidara that, should an offer be made on the terms set out above, it would be minded to recommend the offer to Wood's shareholders, subject to agreement of the full terms and conditions of the offer."
At the end of May 2024, Wood Group said that it was evaluating a fourth and final "unsolicited, preliminary and conditional" takeover proposal from Sidara at 230p a share.
However, in August last year Sidara announced that it would not be making a takeover offer for Wood Group due to "geopolitical risks and financial market uncertainty".
Talks between the two kicked off again in February 2025.