Eamonn Rothwell, CEO of Irish Continental Group (ICG), is facing an important vote on his €1.2 billion bid to take the ferry operator private. The vote, originally set for last Friday, has been postponed to September 10th. This delay gives shareholders more time to think about their choices. The independent board of ICG noted that both private and institutional shareholders had trouble casting their votes in the original timeframe.
Key Details
DNCA Finance, a Paris-based investment firm, and Meath businessman Eamon Waters are seen as potential key players in the upcoming vote. DNCA Finance owns a 3.36% stake in ICG and is reported to have changed its voting position. Waters's Sretaw investment vehicle holds a 3.79% equity stake and an additional 2.1% interest through non-votable financial instruments. Market sources say that Waters has not yet voted by proxy, creating uncertainty about his stance.
Background
About 20% of ICG's stock had not submitted votes by the deadline before the original meeting. The management team's 23.7% stake in ICG cannot be included in the vote. The buyout needs at least 75% approval under a scheme of arrangement structure overseen by the High Court. Reports indicate that the management buyout team was close to getting the necessary votes, being “within a single-digit percentage” of the required threshold.
Related coverage: ICG Delays €1.2 Billion Buyout Amid Shareholder Opposition.
The delay in the vote could affect ICG's stock performance as shareholders reassess their positions. The ferry operator's future direction and possible changes in management could influence investor sentiment in the travel and transport sectors. The outcome of the vote on September 10th will be critical for ICG's privatization plans.
Based on reporting by: irishtimes.com