The Londis board has accepted a £60m offer for the convenience store chain from Irish retail group Musgrave.

The board said that while the Musgrave offer was not the highest tabled, the combination of price and strategic and trading elements was the key to the deal.

The proposal values each Londis share at £31,266 on the basis of 1,919 shareholders. Musgrave will pay half of this to shareholders within 16 days of the transaction becoming effective and the second half twelve months later.

The four members of the Londis executive management team will not receive any part of the £60m.

Londis vice-chairman Peter McNamara said: “We have weighed up all the relevant considerations carefully and have concluded unanimously that the Musgrave proposal - to acquire Londis for approximately £60m - is in the best interests of our shareholders.”

The offer will now be subject to the approval of Londis shareholders.