A consortium led by Co Galway entrepreneur Mr Declan Ganley is among the five parties understood to have expressed an interest in bidding for Irish Fertilizer Industries (IFI). The others are: the Irish agri-business group, IAWS, which owns the Gouldings fertiliser group; Finnish company Kemira; US company Terra; and Norweigan firm Norske Hydro.
The sale is being handled by IBI Corporate Finance and is due to be concluded in the coming months. A prospectus is expected to be issued shortly to the potential bidders.
Mr Ganley, managing director of Ganley International, told The Irish Times he was leading a consortium interested in acquiring IFI. But he refused to outline his future plans for the company if successful. Ganley International has extensive gas and fertiliser interests in Eastern Europe and could use the company as a vehicle to expand its network. Last year it negotiated the right to privatise a fertiliser production facility in the Balkans.
The other bidders have substantial fertiliser operations and would be keen to secure IFI's 40 per cent share of the Irish market through its acquisition. It also has about 4.5 per cent of the European market.
IFI is jointly owned by the State, through NET, and the British chemical company, ICI. The State has a 51 per cent interest, with ICI holding the remaining 49 per cent. It employs 630 people in Arklow, Cork and Belfast. Unlike the majority of European fertiliser operations, IFI has been extensively rationalised.
In valuing the company, the potential bidders will take on board the substantial losses incurred by the company last year due to deteriorating market conditions. It reported pre-tax losses of £10.7 million (#13.6 million) for the year to the end of September 1998, compared with pre-tax profits of £7.1 million (#9.02 million) in 1997. IFI managing director Mr Tom Jago blamed the poor results on the "dramatic and unexpected fall in fertiliser prices across Europe".
The sale was prompted by ICI's decision last year to realise its shareholding following the disposal of its fertiliser interests in Britain. The Tanaiste, Ms Harney, has given reassurances to trade unions on jobs at the company.
