One51 Capital and the Doyle Group made a cash bid of €22 a share late yesterday for Irish Continental Group. Ciarán Hancock, Business Affairs Correspondent, reports.
The offer, made by a company called Moonduster, has been recommended by the ferry group's independent directors.
Moonduster's offer is 18.9 per cent higher than the €18.50-a- share bid made by ICG's chief executive Eamonn Rothwell and other senior management on March 8th. That bid, made by a company called Aella, was worth €471 million.
Moonduster's rival bid values the ferry group at €560.9 million and is being funded by Bank of Scotland Ireland. The consortium already owns 20.38 per cent of ICG's equity.
The latest bid will be put to shareholders at an extraordinary general meeting to be held in Dublin in late July. If it gets the green light, the deal will be subject to the approval of the Competition Authority.
It remains to be seen if Aella, which is being advised by Goodbody Corporate Finance, will increase its offer for ICG. The management buyout team owns about 14 per cent of ICG's shares.
As a result of Moonduster's bid yesterday, the independent directors said they were withdrawing their recommendation for Aella's bid. It is understood that Mr Rothwell plans to leave ICG if Moonduster gains control of the company.
ICG's shares closed in Dublin yesterday at 20.85, up 1.7 per cent on the previous day.
Moonduster, which is being advised by Davy and IBI Corporate Finance, is a subsidiary of a company called Rambone.
One51 owns 80 per cent of Rambone while the Cork-based Doyle Group has a 20 per cent stake.
This ownership structure is thought to have been put in place to assuage concerns about competition issues.
The Doyle group provides agency, chartering, forwarding, stevedoring and terminal operations in Belfast, Dublin, Cork and Waterford.
Doyle would be a competitor of ICG's in Dublin Port. Customers of the ferry company have expressed concern about the Cork-based company controlling ICG's cargo activities in Dublin.
John McGuckian, ICG's chairman, said the bid offered an "excellent opportunity" for shareholders to "realise their investment".
Philip Lynch, One51's chief executive, said ICG was an "attractive investment opportunity" for his consortium. "We look forward to continuing the development of its business in the future," Mr Lynch said.
Moonduster's bid is being made by way of a scheme of arrangement, which requires the approval of the High Court. The offer will also need the approval of 75 per cent of ICG's shareholders to become effective.
Moonduster will be entitled to received up to €5.69 million in compensation in the event of the offer not succeeding in specific circumstances.
Latest results for ICG show it increased its turnover by 4.6 per cent to €312 million in the year to the end of December. Its trading profit increased to €32 million from €18 million in 2005.
