Doyle Group, a family-owned ports-related business based in Cork, is expected to buy additional shares in Irish Continental Group after it emerged yesterday that the company had paid €6.2 million acquiring a 1.3 per cent stake in the ferries group.
Doyle Group yesterday informed the stock exchange that it had acquired 310,000 shares in ICG on Tuesday at €20 a piece. Informed sources said the media-shy group is now likely to add to this shareholding.
ICG is currently the subject of an €18.50-a-share recommended offer from a management buyout team led by its chief executive Éamonn Rothwell.
Founded more than 100 years ago, Doyle Group is controlled by cousins Conor and Frank Doyle. Latest accounts show that it made after-tax profits of €3.1 million on turnover of €29.8 million in 2005. The company, which employs 300 staff, had shareholder funds of €17.8 million and €5.8 million in cash.
Its biggest operation is in Dublin Port, where it has a significant cargo handling business run by a subsidiary called Portroe Stevedores. The group has invested about €20 million in the Dublin Port business over the past 15 years and Stena Line, a leading rival of ICG, is thought to be a major customer there.
Doyle's move has led to speculation that the company could be acting in conjunction with the Philip Lynch-led One51, which last week acquired a 5.6 per cent stake in ICG. No comment was available from Mr Lynch.
Mr Lynch, who hails from Cork, is believed to have conducted significant business with the Doyle Group during his time as head of food group IAWS.
Meanwhile, it emerged yesterday that Mr Rothwell received a 50.8 per cent increase in his total remuneration in 2006, according to the firm's annual report. Mr Rothwell earned just over €1 million last year, compared with €664,000 in 2005.
His salary rose by 7.2 per cent to €404,000 while his "performance pay" more than doubled from €242,000 in 2005 to €552,000 last year. He also received €45,000 in benefits in 2006, the same level as in 2005.
The doubling of Mr Rothwell's performance pay coincided with the completion last year of an outsourcing agreement with staff operating on its ferry services between Ireland the UK. This followed a bitter dispute with Irish workers that involved strike action in 2005. These workers were replaced with cheaper labour from eastern Europe.
Excluding pension contributions, Mr Rothwell earned more than his five fellow directors combined. The total bill for directors' remuneration last year was just under €1.9 million, compared with €1.4 million in 2005.
Garry O'Dea, ICG's finance director, saw his remuneration increase by 25.8 per cent to €400,000. His salary rose by 4.7 per cent to €244,000 while his performance pay more than doubled from €62,000 in 2005 to 133,000 last year.
Marketing chief Tony Kelly received a 19.2 per cent rise in his total pay to €298,000.
