Shares in ferry operator, Irish Continental Group (ICG), hit a new high yesterday as investors reacted to the news that one of the rival bidders for the company has doubled its stake.
The shares closed at €20.75 in Dublin last night, a 12-month high, close to double the €10.40 low at which it has traded over the last year. The stock has gained 33 per cent since the first week in March.
Close to half a million units were traded yesterday as buyers moved in anticipation of making a profit at the end of a process that has seen a management buyout bid run into a potential rival offer.
ICG chief executive, Éamonn Rothwell, and his management colleagues have offered €18.50 for the company through an entity called Aella.
But this looks likely to be trumped by a higher bid from a combination of Cork-based shipping group, Doyle, and investment vehicle, One Fifty One.
Last night's closing price is 25 cent more than the €20.50 a unit minimum that the One Fifty One and Doyle Group consortium will have to bid for the company should it make a formal offer.
The consortium doubled its holding in ICG to 17.55 per cent just before the bank holiday weekend, buying shares for €20.50. It has spent more than €92 million on building its stake in the group but did not buy shares yesterday.
Last week, it announced that it was considering making an offer of at least €20 a share for the company, pending the outcome of a due diligence process. As it bought at €20.50 on the market, stock exchange rules oblige the consortium to offer this price to all shareholders. This values its potential bid at €543 million.
There was some speculation yesterday that Aella will be forced to increase its offer, as it is €2 below the likely minimum that One Fifty One and Doyle can bid.
The independent directors, led by chairman, John McGuckian, issued a statement last week saying that they would adjourn a series of shareholder meetings scheduled for next Thursday, at which the Aella bid was to have been voted on.
ICG owns Irish Ferries. Doyle is a long-standing shipping and stevedoring company. One Fifty One is a utility-focused investment vehicle spun out of the IAWS Co-op by businessman, Philip Lynch.
