Barlo's independent directors sweet on Melgan offer

Barlo is to recommend to its shareholders that they accept the 40c per share cash offer made by management buyout vehicle Melgan which is headed by Barlo chief executive Dr Tony Mullins.

IBI Corporate Finance made the offer to Barlo's independent directors and if accepted would see the company valued at €70m.

Commenting on the offer, Dr Anthony Mullins, a director of Melgan, said: "We are pleased to have reached agreement with the Independent Directors on the terms of our offer which gives Barlo shareholders the opportunity to realise a fair value for their shares."

The Independent directors intend unanimously to recommend that Barlo shareholders accept the offer.

They intend to do so in respect of their own beneficial holdings totaling 826,772 Barlo shares, which amount to approximately 0.5% of the issued share capital of Barlo.

Niall Carroll, Barlo chairman said on behalf of the Independent Directors today: "After careful consideration we are pleased to recommend this offer which we believe is in the best interests of Barlo shareholders and which provides them with an opportunity to realise their investment for cash at a fair price."

Barlo Group plc is a pan-European manufacturing company with established operations in plastics and radiators.

Its plastics divison incorporates Barlo Warmastyle and Veha brands with three factories in operation in Ireland, Britain and Belgium.

Merriott Radiators, the Group's commercial radiator division, operates in the specification radiator sector and has its manufacturing facilities in Clonmel, Co Tipperary.

Its shares are listed on the Irish and London Stock Exchanges.