Takeover interest boosts CNG

SHARES in CNG rose by more than a quarter yesterday after the travel company said it received two further takeover approaches.

The company, which is listed on London’s Alternative Investment Market (AIM), last week accepted an offer from chief executive PJ King to take it private.

His vehicle, Corporate Travel Holdings (CTH) offered 14.5 pence (22.1 cents) a share offer for the company.

But CNG shares rose by 27% to 16.75p after the company said it had received proposals from two unidentified parties.

CNG said in a statement: “Each of the proposals is at an indicative price which would trigger the undertaking by CTH shareholders to accept a competing offer of at least 16.5 pence per CNG share, or increase the price payable pursuant to their offer to a level above the competing offer.”

CNG said it was prepared to give the two other potential bidders access to its books. Senior management cautioned shareholders that there was no certainty a rival offer would be made and they were still recommending that investors accept Mr King’s offer.

Corporate Travel Holdings is owned by Mr King and Barry Liben, the head of Tzell, CNG’s US travel agency business.

Several of CNG’s largest shareholders had agreed to support Mr King’s offer including Michael Smurfit Junior.