Irish Continental's shares (IR5B_u.I) surged on Monday, after the Dublin-listed maritime transport group last Friday agreed to a €1.2 billion ($1.37 billion) management-led buyout almost two decades after its CEO's previous failed takeover attempt.
The offer, which has been unanimously recommended by ICG's independent board, will pay shareholders €8 a share, a 28.2% premium to the stock's closing price on Friday.
ICG shares jumped past the offer price on Monday, gaining up to 30% to reach €8.10.
Bluefin Bidco, the vehicle used to execute the deal, is owned by four members of ICG's senior management team — CEO Eamonn Rothwell, David Ledwidge, Andrew Sheen and Declan Freeman — who collectively hold about 23.7% of ICG shares.
ROTHWELL'S SECOND ATTEMPT
The buyout bid marks Rothwell's second attempt to take the Irish Ferries owner private, following the collapse of a consortium-backed bid during the 2008-2009 financial crisis.
He said ongoing fuel cost swings, inflation and uncertain trading conditions continue to weigh on ICG, making private ownership a more attractive structure for the company.
"We view the timing as favourable," Davy analyst Stephen Furlong said, highlighting that ICG had achieved full ownership of its Irish Ferries fleet and executed significant share buybacks over the last few years.
The management team will realise cash proceeds of €90 million, representing about one-third of their shareholding, while rolling the remainder into the acquisition structure.
The deal is being funded through €455 million in preferred equity from funds managed by Global Infrastructure Management and €798 million in senior debt arranged by BNP Paribas (BNPP.PA) and Banco Santander (SAN.MC).
($1 = 0.8767 euros)
