McGill & Co Limited was placed into administration earlier this month, making 374 of the company’s 429 employees redundant with immediate effect.

A company led by local businessman Graeme Carling is now in exclusive talks about a deal, KPMG have announced.

Mr Carling owns private property rental and management firms Carling Property Group and PRS Group.

Blair Nimmo, global head of restructuring and Joint Administrator at KPMG, said: “The Joint Administrators are pleased to announce they have appointed Catalus Energy Investments Limited as the preferred bidder and granted them a short period of exclusivity to acquire the business and certain assets of McGill & Co Limited – in Administration.

“Agreement of the sale is subject to due diligence and contractual agreement, however, both parties are hopeful that a transaction can be concluded in early course. Further information will be available in due course.”

Blair Nimmo and Geoff Jacobs of KPMG were appointed as joint administrators of McGill on Friday 1 February.

McGill & Co was established in 1981 as a specialist building contractor.

The company provides services to clients in the residential, commercial and industrial sectors from its headquarters in Dundee and ancillary offices in Glasgow and Edinburgh.

The company trades through five divisions; mechanical & electrical services, facilities management; social housing; private residential; fibre and wireless.