Barlo's independent directors are to recommend a 40 cent per share cash offer from a management team led by chief executive Tony Mullins.
The offer values the plastics and radiator group at around €70m. Barlo shares were unchanged at 38 cent in Dublin this evening.
Melgan, the vehicle for the MBO offer, said the offer represented a premium of 60% over the closing price of 25 cent on the last dealing day before the approach was announced.
The offer is conditional on the disposal of its Athlone Extrusions subsidiary to Hasik, a company set up by management and staff at the Athlone company. Melgan and Hasik have already reached binding agreement on the sale.
Melgan said the company had received no other offers since the approach from Dr Mullins in July last year. It said the company had been trading in line with expectations in the three months since its interim results were announced.
The Melgan statement said the average net debt position of the company for the six months to the end of December 2003 was just under €124m.
