Independent directors sell out

By Dita De Boni

The independent directors of rope and textile company Donaghys are selling their shares to managing director Ross Callon's management buyout vehicle, Balclutha Holdings, for 150c, and will advise shareholders to follow suit.

The price is 5c higher than Balclutha's first proposal of 145c and 33c higher than the lowest fair appraisal price set by Grant Samuel and Associates - the highest being 166c.

The independent directors have a 20 per cent shareholding in Donaghys.

Mr Callon said he expected a high take-up of the offer.

He said the "excellent" final price represented a 33 per cent premium above the weighted average share price of the past 12 months and would be mailed to all 4400 shareholders on Thursday.

Mr Callon said Balclutha - comprised of himself and AMP Asset Management's owning 17 per cent of Donaghys - needed 88 per cent of shares to call the transaction complete.

The offer would be extended if the majority of shareholders did not sell by October 26.