Professional services group K3 Capital has revealed it is in "advanced discussions" with the former owner of Dreams and ScS over a possible takeover.
The Bolton-headquartered firm is talking with Sun European Partners, on behalf of Sun Capital Partners Group, after receiving "expressions of interest from multiple parties".
K3 Capital's independent directors have told the potential buyer that they "would be minded to recommend unanimously" its possible cash offer to acquire all of its shares at 350p each if a former bid is submitted.
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The potential 350p-per-share offer would be almost 17% higher than the closing price of K3 shares on December 7 and values it at around £257.3m.
In a statement, K3 Capital said: "The board is working closely with Sun Capital to help complete its confirmatory due diligence and satisfy its other pre-conditions as soon as practicable.
"The other parties who previously expressed an interest have confirmed that they are no longer considering a possible offer for the company."
K3 Capital was established in February 2007 by Tony Ford and a co-investor, to acquire KBS Corporate, then called Knightsbridge Business Sales plc, a business broker and business transfer agent.
In the year to May 31, 2022, the group reported a revenue of £70.6m, up from £47.1m, and pre-tax profits of £12.7m, a rise from £7.6m.
Since the takeover talks were revealed, the group's shares have risen to their highest level since February this year.
Sun European Partners recently hit the headlines in the North West when it acquired a recently-rebranded Manchester customer acquisition specialist for the legal sector.
Sun European Partners has invested in more than 475 companies worldwide since 1995 and has revenues of more than $50bn.
It acquired also Southport-headquartered Fletchers Solicitors in October 2021 for an undisclosed sum.
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