Crean offer document appears to confirm Clondalkin as possible Inishtech buyer

JAMES Crean's formal offer document, which has been sent to Inishtech shareholders, appears to confirm that Clondalkin has had discussions with Crean on purchasing Inishtech. It says Crean director, Mr Domhnall McCullough, "had a potential conflict of interest arising from his role with another party with which the Crean group has had informal discussions" in relation to the sale of Crean's holding in Inishtech. Mr McCullough is also chairman of Clondalkin.

The document offers the remaining shareholders the chance to sell out at 550p per share. James Crean already holds 93.39 per cent of Inishtech, the paper, packaging and print company, having increased its holding from 71 per cent on March 6th and February 28th.

Inishtech last traded on March 6th at 550p per share.

Crean will have to get 80 per cent acceptances in respect of the 6.1 per cent of Inishtech shares it hasn't already purchased before the takeover is approved.

Crean has already indicated that once it acquired the outstanding shares it would like to sell on Inishtech at an early date.

The offer document confirms this, saying that if its offer from the minority shares succeeds, it intends to "progress towards a sale of Inishtech, subject to the achievement of a satisfactory price and other terms and conditions." Crean "has already received several unsolicited expressions of interest from potential buyers," the document adds. All indications of price have been lower than the 550p per share it is offering shareholders, it says.

Clondalkin and the British Wace group are seen as the most likely purchasers of Inishtech. The offer remains open to shareholders until 3.00 p.m. on April 22nd next. If enough acceptances are received, Crean will compulsorily acquire the remainder and Inishtech's shares will be delisted.

Crean's brokers, Davy, went into the market last month and built up its Inishtech share holding from 71.1 per cent to over 93 per cent, following a prolonged wrangle with the Inishtech board over buy out terms.