Irish Continental Group (ICG) chief executive Eamonn Rothwell’s €1.2 billion management buyout bid for the ferry operator was approved by the High Court on Tuesday, paving the way for the deal to be completed within weeks.
The €8-a-share transaction has been structured as a so-called scheme of arrangement, which required approval of more than 75 per cent shareholder support - excluding shares held by the management buyout team - and court approval. The four-man management team owns a 23.7 per cent stake in ICG, which operates Irish Ferries.
A resolution put to shareholders two months ago to sell was carried by 79.2 per cent of voting shareholders, above the 75 per cent required to go through.
ICG said on Tuesday that the last day of share trading is expected to be Friday, November 20th, with payments to shareholders for their stock expected to be distributed no later than December 4th.
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The bid by Rothwell (71), who owns 21.7 per cent of the business, and other senior managers, who hold a further 2 per cent of the stock, was announced in late July. It came 19 years after the long-standing chief executive made a previous failed attempt to lead a management buyout.
That was thwarted when then developer Liam Carroll and a consortium led by businessman Philip Lynch’s One51 and Doyle Shipping each accumulated stakes, leading to a takeover struggle that ended in stalemate.
Rothwell has led the group since 1992.
