Fabric supplier Silk Industries Plc on Thursday said Tayvin 300 Ltd had offered 42 pence per share cash with a loan note alternative under a management buy-out.

The firm, which supplies fashion houses including Christian Dior, said in a news release the offer values the fully diluted share capital of Silk at around £5.3 million.

Tayvin was formed by Silk's management team and is headed by executive chairman, David Tooth.

Last week the company reported a pre-tax profit of £1.11m versus £1.06m in 2002 although sales fell to £11.23m from £12.2m.