IAWS Co-op builds 23% stake in NTR
It notified the holding company yesterday that it now has 23.06% of the group, which is traded in the grey market.
IAWS began to build its stake in the group in early January 2005.
Weekend reports suggest IAWS Co-op led by Philip Lynch, the former chief executive of IAWS Plc, is determined to build its stake up to 25%.
Last week, Tom Roche reacted to the IAWS moves and upped his family’s stake in the NTR to over 43%.
Management and staff hold 3% of the equity and another 15% is held in private hands.
Much of that holding is believed to be loyal to the Roche family, but with the shares rising from E13 back in October to E24.50 at present, IAWS is likely to find sellers at that price, market sources believe.
IAWS Co-op now owns E5.5 million shares of NTR.
Earlier in January, IAWS Co-op, which owns 11% of the IAWS plc, bought almost 21% of NTR following a strategic review.
This was done in two deals. The value of the co-op’s investment has rocketed in the meantime from 70m to over 130m at today’s prices.
In March 2004, IAWs opened negotiations with South Western Services, with a view to buying out certain of its interests as part of a strategic refocusing of the business under Mr Lynch.
Due diligence was understood to have been carried out, but there has been some surprise that the deal has not been finalised.
After its initial investment, IAWS said in a statement that it regarded NTR as a well run company, strategically placed for future growth, and said it was very pleased to be making an investment in the company.
With the co-op edging close to 25% of the equity, it will then be close to a strategic blocking position when it comes to special resolutions at annual general meetings.
NTR chairman, Tom Roche, has built up his personal stake in the group to just under 44%.
That move suggests serious concern among the NTR board that Mr Lynch’s intentions are less than benign, a source close to the company said.
