The independent directors of Irish Continental Group (ICG) have said they do not believe its land bank will deliver a windfall to shareholders or the parties interested in buying the shipping company. Barry O'Halloranreports.
Speaking at its extraordinary general meeting (egm) yesterday, ICG chairman John McGuckian said independent advisers had told its directors that a €471 million management bid for the group fairly reflected the value of its land in Dublin Port.
Chief executive Eamonn Rothwell and his management colleagues have tabled an €18.50- a-share offer for ICG through a company called Aella.
Last week, a consortium of investment vehicle One51 and shipping company Doyle Group said it was considering an offer, which would have to be at least €20.50 a share, or €543 million.
There has been speculation that ICG's land in Dublin Port is the bidders' real target. South Wharf, which owned the old Ardagh Glass site in Dublin's docklands, last year sold the land for more than €17 million an acre.
Responding to questions from shareholders, Mr McGuckian said the Dublin Port property was held on a long lease. This includes a condition preventing it from being used for anything other than a ferry terminal, which limits the property's value.
The South Wharf property was the subject of a similar restriction, but this was subsequently found not to apply.
Mr McGuckian said this was unlikely to happen with ICG's property. "It's subject to a restrictive covenant confining the use to terminal activities," he said.
One shareholder asked why the independent directors originally believed €18.50 a share to be a fair valuation.
The chairman said their actions had helped bring the company to the point where it had a fully-backed €18.50-a-share offer and was looking at the possibility of another one. "We were aware that if the management offer were not sufficiently large, it would set the ball rolling. We did the right thing in getting value for shareholders," he said.
Shareholders voted to adjourn the meeting. One51 and Doyle have yet to begin the due diligence on which a firm offer will depend.
