A COMPANY that claims it was effectively prevented from bidding for Siteserv is likely to be represented at the construction services group’s shareholders’ meeting today.
Businessman Denis O’Brien is poised to buy Siteserv for €45 million through an Isle of Man company, Millington, in a deal that has to get the backing of shareholders at an extraordinary general meeting (egm) in Dublin today.
Since the deal was announced in the middle of last month, it has emerged that other organisations were prepared to pay more than €45 million for the business.
Australian private equity fund Anchorage indicated that it was willing to pay €52 million, but was told shortly afterwards Siteserv was in exclusive talks with Millington.
French group Altrad, which says it would have offered €60 million, claims it was told informally that Siteserv was not for sale.
Altrad’s representative, Ray Neilson, who says he contacted Siteserv chief executive Brian Harvey several times with a view to making an offer for the company, is due to attend today’s today.
Mr Neilson has bought shares in Siteserv, which entitles him to attend and speak at the meeting.
Siteserv’s advisers, stockbroking firm Davy and KPMG, believed that conditions attached to other, more generous bids may ultimately have resulted in a lower payment.
Listed investment firm TVC is understood to have made a bid for the group, but its offer was considerably lower than Millington’s.
It has also emerged that proxy adviser firm Institutional Shareholder Services has recommended the deal to Siteserv stakeholders.
The group itself has already confirmed that 67 per cent of shareholders have indicated their support for the deal. The resolution needs 75 per cent to pass.
Under the deal’s terms, shareholders will get €5 million while the State-owned Irish Banking Resolution Corporation (formerly Anglo Irish) will get €40 million in settlement of a €150 million due to it from Siteserv. This means the bank is taking a 70 per cent-plus haircut.
Siteserv’s board has stated publicly several times this week it believes Millington’s offer to be in the best interests of the company and its stakeholders.
The group employs 2,300 people, about 900 of whom work in the Republic.
