ICG's Rothwell leads €471M buy-out
Irish Continental, the ferry, freight and transport services group, has accepted a buy-out offer from its senior managers led by MD Eamonn Rothwell valued at €471M ($618M). Under the offer terms from Aella Plc, each shareholder would receive €18.50 per unit compared to the closing price yesterday of €15.60 per unit. Each unit comprises one ordinary share and three redeemable preference shares. News of the offer was made on the same day as ICG announced its 2006 pre-tax profits of €33.3M compared with a €15M loss in the previous year. Turnover rose 4.6% to €312.1M in 2006 from €298.5M. The improved performance is down to there being no industrial action, a rise in freight revenues and lower costs after restructuring. It is understood that the directors not participating in the buy-out will recommend the offer to shareholders when a firm offer is made. Negotiations with Irish Continental's senior management are said to be at an "advanced stage” and the offer is subject to due diligence and financing. A market analyst suggested to Fairplay that both the buyout offer and the improved profits were the result of the changing from Irish to agency crews, which improved the competitive position of Irish Ferries, the main group subsidiary.
