Shares in energy services and engineering firm Wood Group soared after it confirmed it has received a fresh takeover approach from Dubai’s Sidara.

The suitor walked away from a takeover attempt of the Aberdeen company in August last year but has returned following the collapse in Wood’s share price in recent weeks.

In a statement to the stock exchange the board of Wood said it noted media speculation and confirmed that it has received an approach from Dar Al-Handasah Consultants Shair and Partners Holdings, better known as Sidara.

It advised Wood shareholders to take no action in relation to the proposal.

Shares closed 10.92p, or 41.7%, higher at 37.32, valuing the company at £256.5 million.

Sidara last year said “rising geopolitical risks and financial market uncertainty” were behind its decision to withdraw its interest after conducting due diligence on Wood and offering 230p per share, valuing the group at £1.7 billion.

That caused shares in Wood to fall instantly by 35% to 126.8p to leave the company worth about £873m.

Wood had previously received interest from US private equity firm Apollo Global Management which walked away after proposing a 240p a share deal.

In October Wood announced a review into corporate governance, and recently said there was a cash flow issue, which has led to a further collapse in its shares.

Chief financial officer Arvind Balan resigned last week following an “honest oversight” in claiming that his professional qualification was as a chartered accountant instead of certified practicing accountant.

He said his decision to go was “based on minimising distraction at this very pivotal time with our investors and lenders”, coming ahead of refinancing its debt later this year.

Under UK takeover rules, Sidara has until 24 March to either make a firm bid or walk away. The deadline can be extended with regulatory approval.