Riverdeep chief confident of MBO success

The chief executive of Dublin-based educational software company Riverdeep expressed confidence today his buyout team's offer…

The chief executive of Dublin-based educational software company Riverdeep expressed confidence today his buyout team's offer for the firm would be successful.

Chief Executive Mr Barry O'Callaghan, speaking to reporters after Riverdeep announced 58.8 per cent of independent shareholders had accepted a management buyout offer made in January by the first closing date, said he was "very pleased" with the take-up level.

"I think it's fair to say -- and I think I'm allowed to say this -- that where the first level have come in relative to our expectations, it is much stronger than anticipated. We're three quarters of the way there," he said.

"If you actually look down the register - without giving names - all of the big guys have tendered," he added.

READ MORE

Mr O'Callaghan's buyout vehicle Hertal Acquisitions, whose offer valuing Riverdeep at $376 million was initially criticised in the market for being too low, said it had received acceptances in respect of a total of 106.4 million shares.

When taken in aggregate with Hertal's 25 per cent holding, this figure represented 69.2 per cent of Riverdeep's share capital, it said.

Hertal, controlled by Mr O'Callaghan and founder and non-executive director Mr Patrick McDonagh, requires 80 percent acceptances for the deal to go through by the final closing date of March 10th.

Mr O'Callaghan said the figures left his team requiring acceptances for around 10 per cent of the overall share register.

Asked whether he was confident of success, Mr O'Callaghan said: "Yes. The statistics definitely would endorse my case... all of the large institutions and the insiders have voted yes."