Candover is poised to spin off the incontinence division of hygiene products maker Ontex for €300m ($406m) in the latest move to rescue the distressed company, which has been in restructuring negotiations since December.

Bloomberg reports Candover is selling the unit of Ontex, which makes babies' nappies as well as other hygiene products, back to chief executive Bart van Malderen. The van Malderen family sold its 78% stake in Belgian-based Ontex to Candover in 2002.