Irish Ferries owner ICG shares surge 26% after €1.2bn management buyout agreed

Irish Continental Group operations include Irish Ferries and the Eucon brand as well as operating Dublin Ferryport Terminal and Belfast Container Terminal

Irish Ferries owner Irish Continental Group's London shares surged more than 26% on Monday, after the Dublin-listed maritime transport group agreed to a €1.2 billion management buyout on Friday that would take it private.

Irish Ferries owner Irish Continental Group's London shares surged more than 26% on Monday, after the Dublin-listed maritime transport group agreed to a €1.2 billion management buyout on Friday that would take it private.

The offer, which has been unanimously recommended by ICG's independent board, will pay shareholders €8 a share, a 28.2% premium to the stock's closing price on Friday. ICG shares jumped past the offer price on Monday, gaining up to 30% to reach €8.10.

ICG divisions include Irish Ferries, which operating on routes between Ireland and Britain,  Britain and France (Dover to Calais), and Ireland and France. ICG's containers and terminal operations include the Eucon brand as well as operating Dublin Ferryport Terminal  and Belfast Container Terminal.

Bluefin Bidco, the vehicle used to execute the deal, is ultimately owned by four members of ICG's senior management team — CEO Eamonn Rothwell, David Ledwidge, Andrew Sheen, and Declan Freeman — who collectively hold about 23.7% of ICG shares.

Under the bid terms, ICG shareholders will receive €8 a share, a 28.2% premium to the stock's closing price on Friday.

"The Independent ICG Board has undertaken a comprehensive review of the acquisition and unanimously believes that it delivers compelling value for ICG Shareholders," ICG Chair John B. McGuckian said in a statement.

The buyout bid marks Mr Rothwell's second attempt to take the Irish Ferries owner private, following the collapse of a consortium-backed bid during the 2008-2009 financial crisis. He said ongoing fuel cost swings, inflation and uncertain trading conditions continue to weigh on ICG, making private ownership a more attractive structure for the company.

"We view the timing as favourable," Davy analyst Stephen Furlong said, highlighting that ICG had achieved full ownership of its Irish Ferries fleet and executed significant share buybacks over the last few years.

The management team will realise cash proceeds of €90m, representing about one-third of their shareholding, while rolling the remainder into the acquisition structure.

The deal is being funded through €455 million in preferred equity from funds managed by Global Infrastructure Management and €798 million in senior debt arranged by BNP Paribas and Banco Santander.

Reuters