Spice in talks on £247m private equity offer

Less than 24 hours after revealing it had been approached by a second potential buyer, understood to be another private equity firm, the Leeds-based utility support services group said it is in advanced negotiations with the European buyout firm based on a 70p per share takeover.

"Although the board of Spice believes that the company has a strong future as an independent business, it recognises that, due to the cash nature and premium of the potential offer, it is in shareholders' interests to facilitate further discussions with Cinven," said Spice.

"The board intends to recommend the offer of 70p per share from Cinven, if made."

Spice has been fighting off the advances of European buyout firm Cinven since late May, when it first approached with a 56p per share offer - an offer rejected as "opportunistic" and "significantly undervaluing" the group.

In July this was bumped up to 62p to 65p, valuing Spice at between 218m and 229m, but was again rejected as undervaluing the group.

Spice added it has terminated discussions with the second potential buyer. Cinven's potential offer would be self-financed, and is dependent on due diligence.

Spice also intends to pay its final dividend of 1.22p per share.