IWP to quit stock market

IWP INTERNATIONAL is to quit the stock exchange after the troubled personal care products group agreed to let its banks take control of the company in return for restructuring its hefty debt burden.

Shares crashed 10% to 4.5 cent on news of the deal, which will also give existing shareholders a way to exit their investment by offering them 3.5c per share in cash. But the offer is a far cry from the 44c they could have received in September 2003, when the company turned down an approach from a management buyout (MBO) team. The company said at the time that the offer failed to reflect the “inherent value of the group.”

The company also said yesterday that chief executive Jim Murphy would leave the company. Mr Murphy had signalled his intention to step down earlier this year, citing a wish not to move to Britain when the company relocated its head office there.

IWP chairman Joe Moran said the restructuring package would allow the group to continue trading with a stronger balance sheet and the support of its banks.

“Completion of the restructuring will preserve the ongoing business operations of the group and the rights of customers, suppliers and employees,” he said.

The deal will see the company’s debt cut from €121 million to €65m but will give the banks a 90% stake in return.