Shares in telecommunications and computer company ITG Group gained a further 6 per cent yesterday after it announced the planned purchase of an additional 4.99 per cent of Orbis Internet Technologies, taking its shareholding to 15.3 per cent.
The purchase of the stake in the privately-owned company, which operates in the secure payments industry, was agreed before Christmas and will cost ITG $5 million (€5.1 million).
The price is in line with that paid by Lehman Brothers, which recently acquired a stake of 7.5 per cent for $7.5 million. It values Orbis, which is being touted as a likely Nasdaq flotation candidate later this year, at $100 million although some observers believe the it could now be worth more.
ITG also said it was entering into commercial agreements with Orbis to exploit Orbis technology across its market sectors.
ITG shares closed at €22.10 yesterday, a gain of 6.25 per cent on the day, having earlier surged by 20 per cent to briefly touch a high of €25.10.
The shares have risen strongly in recent days amid reports that ITG was buying an additional chunk of Orbis and rumours that the company could float in the autumn.
At yesterday's closing levels, ITG shares are some 38 per cent above last Friday's level of €16.00 and more than 125 per cent above the share price of €9.75 at the start of the year.
ITG also announced that Mr Paschal Taggart, Orbis chairman, has resigned his position as non-executive chairman of ITG lest a conflict of interest arise between the two positions.
He will be succeeded at ITG by Mr John James McDonnell jnr, who is chairman and chief executive of Paylinx Corporation, a US provider of transaction payment software for both Internet sites and call centres.
