The board of Irish Continental Group (ICG) has thrown its weight behind a buyout offer of €8 per share, declaring the deal fair and reasonable while pushing back against criticism from investors who believe the price undersells the company.
The offer is being led by ICG chief executive Eamonn Rothwell and a management group looking to take the ferry and logistics operator private. The bid has sparked a debate among shareholders, with some arguing the price does not reflect the true value of the business.
But the board is standing firm. In a statement backing the proposal, directors said the offer represents a fair outcome for shareholders and that the criticisms being levelled at the deal do not hold up to scrutiny.
ICG is one of Irelands best known transport companies, operating passenger and freight ferry services between Ireland and Britain as well as container and logistics operations. The business has been publicly listed for decades, so a move to take it private would mark a significant shift for the company.
At €8 per share, the buyout values the company at a substantial premium to where the stock had been trading before the offer landed. The board argues this is exactly why shareholders should back the deal rather than hold out for more.
Not everyone is convinced. A number of investors have voiced concern that the management team, by leading the buyout themselves, are in a position to acquire the business at a price that suits them rather than ordinary shareholders. Critics of management buyouts generally point to the obvious conflict of interest when the people running a company are also the ones trying to buy it.
Rothwell and his team have been central to ICGs performance in recent years, steering the company through the disruption caused by Brexit, which had a significant impact on Irish sea trade routes, as well as the chaos brought on by the pandemic. The company bounced back strongly and has posted solid results since then, which is partly why some shareholders feel the timing of a buyout at current prices is convenient for management.
The board, however, insists an independent review of the offer supports their position that €8 is a fair price. They have urged shareholders to consider the offer seriously rather than being swayed by what they describe as unfounded criticism.
The coming weeks will be critical. Shareholders will ultimately have the final say on whether the deal goes through, and with vocal opposition already emerging, the outcome is far from certain. If enough investors decide to reject the offer or hold out for a higher price, the management group could be forced back to the table.
For now, the board is holding the line and asking shareholders to trust the process.
Boards backing buyouts that benefit nobody but the suits at the top, classic. Shareholders getting dismissed like they don’t actually own the bloody company. €8 a share better be a decent premium or this is going to get messy real fast.