High-Point is understood to have until 14 February to decide whether to make a formal offer after completing due diligence procedures. The two have been in talks since Christmas.
MDA, which employs 220 staff in 10 UK offices, is expected to fetch 拢4m-6m. Its work is mainly quantity surveying and project management.
High-Point鈥檚 UK business includes traditional engineering and water treatment, but it has also built a strong reputation as a project troubleshooter.
High-Point finance director Stephen Greenwood said: 鈥淚f the deal goes ahead, it would allow us to make a quantum leap in our UK business. At the moment, we are regarded as an engineering consultancy, but we want to be seen as a specialist consultancy in capital projects and developments.鈥�
High-Point, which has a support services listing on the stock market, employs about 400 people worldwide. It has attracted a batch of heavy hitters to its non-executive board, including former Taylor Woodrow chief executive Tony Palmer and ex-chairman of Grand Metropolitan Lord Sheppard.
But in recent months, the company has come under pressure from shareholders to improve its stock market valuation. This stands at 拢15.7m 鈥� a fraction of the value of its larger rivals WS Atkins (拢662m) and WSP (拢111m). The firm is hoping that the MDA approach will be seen as evidence of its desire to grow.
However, High-Point鈥檚 plans could hit a glitch if 30-year old entrepreneur, Stefan Allesch-Taylor, who has a 29.75% stake in MDA, refuses to sell.
Allesch-Taylor, who is chairman of STG Holdings, bought his stake for about 拢1m in May last year, prompting speculation that he was looking to buy MDA himself.
However, he has so far chosen to sit on the investment. He said: 鈥淚 have a good rapport with the management of MDA, but the initial spate of enthusiasm on both sides has subsided.鈥�
Allesch-Taylor鈥檚 recent attentions have been elsewhere. In the run up Christmas, he bought a 60% stake in a US Internet company for about 拢85m. And STG, which has, until now, been listed on Ofex as a property firm, is currently trying to relist as an investment company.
Allesch-Taylor told 好色先生TV in July 1999 that he was keen to turn MDA into a 鈥渙ne-stop鈥� property service provider similar to WS Atkins.
High-Point鈥檚 plans could be seen as a move in the same direction, but the firm does not want Allesch-Taylor to retain his sizeable stake. Greenwood said: 鈥淲e want to get as close to 100% control as we can.鈥�
