After Conduit’s MBO alphyran is now centre of attention

CONDUIT’S management buyout offer (MBO) could be quickly followed by yet another exit from the Irish Stock Exchange if alphyra executives decide the market is not buying into its story.

The news from Conduit that its management plan to make a €52 million bid for the company which was valued at €42 million when the exchange opened yesterday morning came in a brief 227 word statement issued by the company.

No one was surprised at the Conduit declaration and speculation has now moved to alphyra, and that perhaps chief executive John T Nagle will lead a MBO at the retail electronic transaction specialists.

The Conduit statement divulged that the approach came from a management team, which is being advised by Goodbody Corporate Finance, led by chairman Eddie Kerr chief Liam Young in concert with the non-executive directors of the company, Laurence Shields, Michael Tunney and Pat McDonagh. These directors currently hold 49.7% of the issued share capital of the company.

Because of the directors interest in the buyout offer they can play no part in the evaluation of the possible offer on behalf of Conduit’s shareholders.

While the executives have chosen Goodbody to act on their behalf they have engaged Davy Corporate Finance Limited to act as independent financial adviser to Conduit for shareholders.