ILP, the Leixlip-packaging group, may be acquired by a multinational, after it announced that it had resumed takeover discussions "which may or may not lead to an offer for the company at a price of not more than 40p sterling [47p] per share".
ILP made pre-tax losses of £668,000 in 1997, due to reduced demand in the computer packaging industry, after moving to its new facility in Leixlip, Co Kildare. In 1996, it made a profit of over £1 million.
Any offer would be subject to a number of pre-conditions, ILP stated. Last December ILP also disclosed that it had received a number of acquisition approaches but had been "unable to agree acceptable terms with a potential offeror".
Mr Paul McLaughlin, sales and marketing director, said a takeover by the foreign multinational, which was also involved in packaging, would allow it to enter the Irish market and develop ILP. He said ILP was trading and "we are reasonably happy". He said the bidder was aware of a court case in the US which ILP took against Sentinel Products Corporation, an industrial foam manufacturer, after a joint venture project between the two companies failed. "I think everyone is well aware of that. That was indicated in our results. Certainly anyone who would talk to us would be very well aware of that," he said.
Hearings in the case, which has seen a counter-claim being taken by Sentinel against ILP, will resume in 1999. Mr McLaughlin added that he would not at this stage disclose the name of the suitor nor the price range in which ILP might be acquired. ILP shares on the London Stock Exchange were up by 6.5p sterling (7.5p) to 32p sterling (37.5p) yesterday, valuing the company at about £6.8 million sterling (£8 million).
The company last dealt at 37p on the Dublin Stock Exchange on June 11th. It was floated on the London exchange in March, 1996, when a £6.75 million sterling share placing was oversubscribed over five times.
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