Moonduster writes down investment in Irish Continental Group by €30m

MOONDUSTER, THE investment vehicle that made a bid for Irish Continental Group (ICG) in 2007, made a writedown of €30 million on its investment in the company, accounts for Rambone, the private company that owns Moonduster, show.

Rambone wrote down Moonduster’s investment, which comprises its 24.92 per cent stake in the issued equity capital of Irish Ferries owner ICG. The investment is “held for the long-term”, according to a note to accounts just filed at the Companies Office.

Moonduster made an after-tax loss of €29.1 million in 2008, with net liabilities of €29.1 million as a result of the writedown.

Moonduster is the vehicle of the One Fifty One consortium, which, along with Doyle Group, made an offer to buy ICG. After Aella, led by ICG chief executive Eamonn Rothwell, made a rival bid, Moonduster withdrew its offer, before both sides teamed up to make a joint bid that was eventually abandoned in April of this year.

The accounts note at the time of signing – September 22nd, 2009 – the market price of investments held in ICG was €68 million.

However, Moonduster paid far more than this sum for its stake.

Its investment at the start of 2008 was €24.6 million, while it made a further investment of €115.8 million in 2008. The writedown of €30 million means it now values its investments at €110.4 million – some €42.4 million above the market price of its investments as of September 22nd.

Rambone’s directors are One Fifty One chief Philip Lynch, Conor Doyle, Francis John Doyle, and Alan Walsh, who was named director in September 2009 after Paul Dixon’s resignation.

ICG’s share price closed yesterday at €13.10, having made some gains since September 22nd, when it closed at a price of €11.25.

Developer Liam Carroll, whose companies are in receivership, owns 29.3 per cent of ICG.