Kunick is off market for £78.2m

VENTURE capitalist Electra Partners today struck a deal to take fruit machines and health clubs group Kunick off the stock market for £78.2m. Electra is backing a management buyout by chief executive Colin Daniels and his team following two years of underperformance for the group's shares.

Kunick has been suffering after two profits warnings and the departure of its chief executive in 2000 since when the board has been seeking ways of returning some value to its shareholders. Interest in the sector perked up last October when venture capitalist Duke Street sold Leisure Link, Kunick's arch rival in supplying slot machines, for £230m.

Holders of Kunick's ordinary shares will receive 16.75p for each and an interim dividend of 0.5p per share. Institutions holding the group's 7p and 8.25p preference scheme shares - legacies of previous refunding rounds - will receive 100p and 104.4p respectively.