Irish Continental Group’s tender offer, announced in August, has been oversubscribed by 20 per cent. About 30 per cent of ICG’s issued share capital was tendered, according to a statement published on the Irish Stock Exchange last night.
The company was aiming to purchase up to 25 per cent of its issued share capital by buying back ICG units, which will then be cancelled.
It is understood that chief executive Eamonn Rothwell slightly tendered just 22 per cent of his holding. This will push his stake in the company from 16.1 per cent to 16.5 per cent.
The tender will result in €111.5 million in cash being returned to shareholders. Because the tender was oversubscribed, shareholders will only be permitted to sell up to 24.73 per cent of their shareholding. ICG offered €18.50 a share.
Irish Continental closed up almost 3 per cent yesterday evening in Dublin at €18.40.
In an update earlier this week, the group reported a slight dip in revenue in July and August to €56.7 million, down from €57.2 million the previous year.