ICG sets Moonduster bid deadline

CAR Ferries group IrishContinental (ICG) has put a deadline of March 18 on the proposed Moonduster bid for the company.

Moonduster’s lead investor is One51, an investment company headed by businessman Philip Lynch that also includes the Doyle Group, the well-known Cork shipping company.

In early December the market was surprised when ICG’s management, headed by Eamonn Rothwell and Moonduster, announced they had joined forces in a fresh effort to find a solution to the long-running takeover saga that began in March 2007.

Both sides had previously battled each other for control of the business. Meanwhile stake building by property developer Liam Carroll made it impossible for either side to achieve their objective.

If a firm offer fails to emerge by March 18 the independent directors said they will ask the takeover panel to set a deadline date.

ICG’s independent directors imposed the cutoff date as the group reported that pre-tax profits rose 6.6% to e43m in 2008 while turnover fell 3.6% to e342.9m. The operating profit fell 16.6% to e41.8m.

Passenger numbers were down by over 6% with car numbers slipping by almost 7%. Freight business was also soft with the roll-on, roll-off market falling for the first time in 20 years.

Chairman John McGuckian said ICG experienced a combination of high oil prices and a weaker economy in 2008, and early signs were that 2009 would be equally tough”.

On the takeover, ICG’s independent board members said they were “concerned at the length of time it is taking for an offer to be announced”.

They added Moonduster must make a bid that “is capable of recommendation and execution”.

Shares in the group were unchanged at e14.75 by close of business yesterday.

Mr Rothwell and Moonduster are understood to be still locked in talks with a number of the major Irish banks.

In December the joint bidders said: “Discussions have commenced with potential funding providers. Notwithstanding the current funding environment, both Moonduster and Mr Rothwell are confident that the requisite funding will be arranged”.

Mr Rothwell is expected to continue as head of the business if the bid succeeds.