Cooley may bid for Norish

COOLEY DISTILLERY may attempt a reverse takeover on a small Irish plc like Norish to provide an exit for investors.

Speaking at the UCC Enterprise Conference yesterday Cooley chairman John Reeling was questioned by UCC Enterprise Society auditor Richard Whelan on the collapse of talks with Caribbean rum giant Angostura Holdings on a €30m takeover.

Mr Teeling promised the 350 Cooley investors would be given an opportunity to make a return on their investment in 2003.

The Cooley strategy may involve a reverse into an entity like Norish and rename the enlarged group Cooley.

Norish is quoted on the Irish Stock Exchange and a takeover by Cooley would provide an opportunity for existing Cooley investors wishing to sell their shares, while providing Cooley with access to fresh capital.

Norish is expected to have sales of €25m this year returning pre-tax profits of €800,000. Norish provides storage and freezing facilities, and other services to food manufacturers and processors in Britain.

Speaking at the UCC conference Mr Teeling said: "I would be very slow to sell my stake in the company because of the blood sweet and tears that I have put into it. I understand the investors need an exit and that will come in 2003," Mr Teeling told the UCC conference.

And Mr Teeling has not ruled out the re-emergence of a deal with Angostura. It is understood Mr Teeling wants to maintain a significant holding in the Louth distillery and may now opt for the reverse takeover option at Norish.