ORB Securities, a sister company of Orb Estates, has agreed a £9.3 million sterling (€14.6 million) cash offer to acquire the British transport firm Seafield, which is listed on the Dublin and London stock markets. The offer is worth 14 pence a share.
In a statement yesterday, Seafield's board of directors issued a unanimous recommendation in favour of the bid to its shareholders. The offer represents a premium of 37 per cent on Seafield's closing price of £10.25 sterling in London on February 7th before the takeover discussions were announced. Seafield shares closed unchanged in London yesterday at £12.50.
If the deal is approved, Seafield will revert to a private company and will be de-listed in Dublin and London.
Orb Securities is registered in the British Virgin Islands and is owned by the Lynch Talbot group. Another subsidiary, Orb Estates, attempted to take over the Irish property group Dunloe last year. These discussions ended last December.
One of the principals of Lynch Talbot is Irish accountant Mr Sam Nolan. Mr Nolan and his partner, Mr Salai Ozturk, manage a number of Jersey-based investment funds, the subscribers to which are described as high-net-worth individuals. Mr Nolan figured in the fraud trial earlier this year of seven former directors of Money Markets International Stockbrokers.
Seafield, which is incorporated in the Republic, provides services in warehousing, packing and distribution in the UK at Worksop, Aylesham and Barnsley.
The poor performance of the group's share price prompted the directors to seek a buyer for the company and they have agreed the Orb Securities bid is the best option for shareholders. "The interests of Seafield and its shareholders will be best served by a cash offer being made at a premium to its share price and will provide shareholders with a means to realise their investment without incurring any dealing costs," a Seafield statement said.
The directors said they believed that 14p a share was the highest price they could expect in the circumstances.
Meanwhile, Seafield yesterday reported pre-tax profits of £515,000 in 2000. The profits were achieved on turnover of £13.8 million. The company blamed fuel costs and disruption from fuel disputes last year for the weak outturn.
