IAWS Co-op ups stake in NTR

IAWS Co-op has upped its stake to 26% in NTR Plc, the operator of the National Toll Roads. IAWS now holds over 6.2 million ordinary shares in NTR, whose shares have shot up from €13 to €27 since October.

IAWS is believed to have bought most of the shares at an average of €19, so it already has a substantial gain on its initial investment.

Last night NTR said: “We welcome IAWS as a shareholder. We are pleased they share our perspective on the potential of our portfolio of infrastructural related businesses.”

The statement cloaks the belief that NTR regards the share buy-up as hostile.

But IAWS Co-op chief executive Philip Lynch, who is negotiating a merger with South Western Services of Bandon, privately insists he has no hostile intent towards NTR.

Up to €80m of the money spent on buying up the shares was raised when the co-op reduced its stake from 17% to 10% in IAWS Plc, which was headed by Mr Lynch until late 2003.

It is understood that Mr Lynch decided the money was better invested in NTR, rather than giving it back to the shareholder co-ops.

That decision has angered some of the co-ops, but Mr Lynch enjoys the support of the co-op board, that includes Kerry Plc’s chairman Denis Buckley, who is also chairman of IAWS Co-op, and Jimmy Murphy, boss of Arrabawn Co-op.