Ennstone, the ailing construction materials group, has entered into takeover talks with Marwyn Materials, an investment fund cash shell, according to people close to the situation.

Marwyn is understood to have made an informal approach following a collapse in Ennstone’s share price earlier this week and the announced departure of Vaughan McLeod, founder and executive chairman.

On Monday, Ennstone said that a deterioration in trading was forcing it to consider asset disposals in an attempt to deal with £200m of estimated net debt, adding that it was considering an equity issue.

Financial Times