Lamprell said it had entered into a letter of understanding with MIS in respect of the potential offer, which would be pitched at a 19 percent premium to the MIS share price at Wednesday’s close.

Lamprell said on Thursday discussions with MIS “are at a very preliminary stage.”

MIS is a diversified engineering and contracting group that provides products and services to the oil, gas and energy sector. The company was established in Dubai in 1979 and has offices in Kuwait and Qatar.

Thursday’s news comes just two weeks after Lamprell said it is eyeing acquisitions in the Middle East.