Irish Continental Group (ICG) has postponed an extraordinary general meeting (EGM) from August 28 to September 10, 2026. The delay aims to gather more support for a €1.2 billion management buyout proposal. This deal needs at least 75% approval from shareholders, excluding the buyout team. Chief executive Eamonn Rothwell, who owns a 23.7% stake in the company, leads the proposal. The independent board, chaired by John B McGuckian, decided to delay the meeting after seeing significant opposition from shareholders.
Key Details
The management buyout is priced at €8 per share. This price is a 25% premium over the average stock price in the three months before the announcement. Rothwell's bid has support from BlackRock’s Global Infrastructure Partners and lenders BNP Paribas and Banco Santander. However, some shareholders are unhappy with how the independent board is handling the process. They feel it does not represent their interests well. Pedro Sousa, a partner at Oxy Capital, said, "If they are truly independent, they should listen to what shareholders are saying and respect the fact that there are not enough votes to approve the deal."
Background
Currently, a potential revolt against McGuckian could happen if the buyout does not get approval at the upcoming meeting. Shareholders with at least 5% of voting rights can call for another EGM, but no such actions have been taken yet. The independent board hopes the delay will allow for more discussions and possibly a formal sale process to boost shareholder value.
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The postponement of the EGM may create uncertainty among ICG investors. This uncertainty could affect the stock's performance in the short term. The outcome of the vote could shape investor sentiment and the company's future direction. Watch for updates leading up to the rescheduled EGM on September 10, 2026.
Based on reporting by: irishtimes.com