CNG chief King in bid for software company

CNG, the Kerry-based provider of software to the travel industry, said last night that chief executive PJ King has made an offer to buy the company.

In a statement issued after the stock market closed, CNG said Mr King and other members of its management team were willing to pay 14.5p (21.2c) a share for the company. CNG shares, which are listed on London’s Alternative Investment Market (AIM), closed at 8p yesterday, valuing the business at £4.7m (€6.8m).

CNG also said that non-executive directors Seamus Ross Jnr and Michael Smurift Jnr were backing the management buy-out team of Mr King and Barry Liben, the head of CNG’s US business Tzell.

CNG has suffered a torrid time since joining the stock market three years. The company was initially valued at nearly €100m but suffered heavy losses after getting into the consumer travel market.

Mr King had attempted to buy the business himself but that deal fell through and CNG sold off its consumer arm to Fexco.

CNG has set up a committee of the independent board members led by chairman Luke Mooney to study the offer.

Last night they said that shareholders should note that while discussions with the management buy-out team are at a very advanced stage there can be no certainty that an offer will ultimately be forthcoming.