Jones Trust Investment (JTI), a company based in Arizona, is understood to have made an offer for the distribution division of the Jones Group, currently the subject of a proposed management buyout.
JTI's principal shareholder is Mr Dominic Jones, the son of Mr John Jones, one of the founders of the Jones Group and the nephew of the other two founders.
Jones Group confirmed late yesterday evening that it had received an approach which could lead to an offer for the share capital of the company but it did not name the interested party.
"The approach is at a very early stage and at this point is highly conditional. A further announcement will be made in due course," the company said.
It also issued a circular to shareholders detailing the proposed sale of its distribution division and its 63 per cent stake in Blugas, an LPG distributor.
The document, which was posted earlier yesterday, outlines the proposed sale of the distribution division to a management-led consortium, backed by ICC Bank, for £10.4 million. Management, led by the chief executive Mr Pat Nevin and the head of the oil division Mr Aidan McKeever, will take a 65 per cent stake in the new company while ICC will own the remainder.
However, the circular does not contain any references to JTI's offer for the businesses which include Jones Oil, a large Esso distributor in the Republic, Minster Fuels, a Texas distributor in the south of England, Hall Fuels, an Esso distributor in the greater London area and Hardy Craske Fuels, which is a Total Oil distributor in Lincolnshire and east Anglia.
The division also includes Appian Fasteners, a profitable distributor of specialist fastener systems in Ireland.
Jones has already conditionally agreed the sale of the companies and shareholders will be asked to approve the management buyout at an extraordinary meeting to be held on February 16th.
They will also have to consider the sale of Jones' 63 per cent stake in Blugas to its fellow shareholders, Bord na Mona subsidiary Suttons and the Richmond group, for £1.65 million.
Jones shareholders include the Swiss company Zehnder which owns 19.8 per cent, Allied Irish Bank Investment Managers (AIBIM) with 18.9 per cent and the Jonestaff Society with 8.3 per cent.
The venture capitalist Mr Pierce Casey holds 5.8 per cent of the company's shares while other large institutional investors include Friends First with 4.6 per cent and Ulster Bank Markets with 3.0 per cent.
The proceeds from the disposals, together with the net cash balances of the group, will be kept on deposit pending an intended cash distribution to shareholders. Following the cash distribution, the company will be wound down, a process that is expected to take at least 18 months.
The company has already sold off its other interests, including its shipping and manufacturing divisions. Last year, it bought back 60 per cent of its share capital from shareholders, returning £18.3 million or 235 pence per share to shareholders.
