CNG shares soar 13% after takeover approach

SHARES in CNG, the Kenmare-based online travel firm, shot up nearly 13% yesterday after the company said it had received a takeover approach.

In a brief statement to the stock exchange, the company said it had received an “informal and unsolicited approach” which may or may not lead to an offer.

“The approach is very preliminary in nature and there can be no certainty that an offer will ultimately be forthcoming,” it said.

The approach is not thought to have come from its founder and former chief executive Finbarr Power. Mr Power quit the firm in June after falling out with other board members over the direction of the business.

He had indicated to the company he was preparing to launch a takeover of the consumer division of CNG (Placestostay.com), which has been underperforming.

It is understood Mr Power talked to the company in recent weeks about buying the consumer arm.

CNG said it is looking to dispose of Places to Stay and focus on its online booking engine and corporate end of the market. The approach is for the entire business. It is likely a rival or larger technology firm is behind the approach.