Shares in Irish Continental Group surged more than 27 per cent on Monday after the owner of Irish Ferries agreed to a €1.2 billion management buyout that would take the Dublin-listed company private.
The proposed transaction is being carried out through Bluefin Bidco, a vehicle ultimately owned by four members of ICG’s senior management team: chief executive Eamonn Rothwell, David Ledwidge, Andrew Sheen and Declan Freeman. Together, the executives hold about 23.7 per cent of ICG’s shares.
Under the terms of the offer, shareholders will receive €8 in cash for each share. The price represents a 28.2 per cent premium to ICG’s closing share price on Friday.
The deal sent the company’s shares sharply higher in early trading as investors responded to the premium being offered for their holdings.
ICG chairman John B McGuckian said the company’s independent board had conducted a detailed review of the proposal and unanimously supported the transaction.
“The Independent ICG Board has undertaken a comprehensive review of the acquisition and unanimously believes that it delivers compelling value for ICG Shareholders,” he said in a statement.
The proposed acquisition remains subject to approval by ICG shareholders and regulatory clearances. Further conditions may also need to be satisfied before the transaction can be completed.
Rothwell said the offer would give shareholders the opportunity to receive the full value of their investment in cash at a substantial premium to the market price.
“The acquisition provides ICG shareholders with an opportunity to realise their investment in full and in cash at a significant premium to the share price,” he said.
The management group behind the bid said it believed the company would be better positioned to pursue its long-term development strategy as a private business.
“BidCo believes the ICG Group’s competitive position and long-term development would be better supported as a private company,” Rothwell said.
Irish Continental Group operates ferry services and other transport-related businesses, with Irish Ferries forming a central part of its operations.
The proposed buyout would mark a major change in the ownership structure of the company if approved. The management-led bid comes as investors continue to assess the prospects of listed companies facing changing market conditions and the demands of long-term investment.
The €8-a-share offer will now go through the shareholder approval and regulatory process before the management team can complete the plan to remove ICG from the stock market.
