SHAREHOLDERS IN Carlow-based engineering company and tool-maker Oglesby & Butler will vote on a proposed takeover bid for the company at an egm next month.
Speaking at the company’s agm yesterday, chairman Nevin Dowling said the firm was advising shareholders to accept a 35-cent-a-share offer from Grove Ventures, a takeover vehicle controlled by directors Kevin and Thomas Anderson.
A scheme of arrangement relating to the bid is expected to be sent to shareholders by the end of this week.
Kevin Anderson, the well-known nonagenarian investor and co-founder of the Ward Anderson cinema group, increased his shareholding in the Dublin-listed tool maker to 49 per cent from just under 30 per cent in August, obliging him to make a mandatory offer for the company at a price of not less than 31 cents per share.
The mandatory offer of 31 cents was made on October 1st. This was followed by an offer of 35 cents per share made by Grove Ventures. The buyout would value the firm at €4.2 million.
Responding to a shareholder yesterday, Mr Dowling defended the terms of the second offer negotiated by the company. “The valuation of a minority holding is very complex. We as a board feel that we negotiated on behalf of the shareholders, and got the price up from 31 to 35.”
It is estimated that less than 25 per cent of Oglesby & Butler shares are in freefloat, with more than 50 per cent of shares owned by Mr Anderson and associates, and some 25 per cent held by the Oglesby family and related board members. The vote on the scheme of arrangements will require a minimum number of shareholders to vote in favour of the deal.
Shareholders also voted yesterday to switch Oglesby & Butler Plc’s listing to the ESM market. Oglesby & Butler Plc is the smallest quoted stock on the Iseq with a turnover of €7 million.
Last month the company reported soaring revenues for the year ended March 31st, 2010, with turnover jumping 42 per cent to €7 million following challenging trading conditions in previous years. This resulted in an operating profit of €763,060, compared to a loss of €519,494 recorded in the previous year.
