MANAGERS of bar chain Yates will unveil a £93.4m buyout of the business later this week it has emerged.

Independent directors of Yates, which has three bars in Hampshire and the Isle of Wight, said talks with a private equity group about a management buyout were at an "advanced stage''.

A recommended cash offer of 140p per share is expected to be announced tomorrow alongside the group's final results, directors said in a market update.

The company previously said when it released interim results that debts were about £63m, although a spokesman today said it had been working hard to cut the debt by improving cash flow.

Yates, which has been attempting to reverse a sales slump amid tough trading conditions, was approached by private equity group GI Partners in early February.

Talks have been known to be ongoing since late last week and today's buyout revelation is said to come with the blessing of GI, which is based in California.

Yates employs about 4,000 people working in 125 bars of the same name and 20 larger Ha!Ha! outlets around the UK. It has a branch in Southampon's Above Bar as well as in Newport on the Isle of Wight and Portsmouth.

GI Partners, whose UK portfolio features Scottish listed building Camperdown House and a healthcare group, specialises in management buyouts and acquisitions.

Yates has recently spent more than £17m on revamping 98 of its pubs in an effort to reverse declining sales, and announced signs of a trading revival in March.