The board of food retailer Londis has recommended to shareholders a cash takeover valuing the company at £60 million sterling (€90.3 million) from Cork-based grocery distributor and retail franchiser Musgrave.
In a statement today, Londis said believes it believes the combination will "provide a stronger competitive future for Londis and its independent retailers".
It added that Londis shareholders will also benefit from a substantial cash payment, although the company admitted the Musgrave's offer was not the highest tabled.
The proposal values Londis shares at £31,266 (on the basis of 1,919 shareholders). Musgrave will satisfy the consideration due in respect of each Londis share as to £15,633 per share within 16 days of the date that the proposal becomes effective, and as to £15,633 per share 12 months later subject to the maintenance by a relevant Londis shareholder of a Londis trading account.
In its statement this morning Londis referred to the controversy over payments to directors late last year that collapsed Musgraves's original €57 million offer.
Londis said: "Following this abandonment, five new independent directors were appointed to the board of Londis and, ultimately, three members of the old board relinquished their positions.
"The restructured board of Londis . . . secured an agreement with the four members of the Londis executive management team to extinguish their rights to receive 51 per cent of the proceeds of any sale in consideration of an aggregate payment to them of £2 million."
Londis is the second British-based convenience store group to be acquired by Musgrave. It also owns 232 Budgens outlets. In Ireland, Musgrave has 19 per cent market share through the Centra and Super Valu brands.