CONSTRUCTION SERVICES group Siteserv plans to ask the UK’s competition watchdog to investigate a deal involving rival Altrad, which this week made a last-minute bid to buy the Irish company.
Businessman Denis O’Brien looks almost certain to buy Siteserv for €45 million after almost 99 per cent of its shareholders voted in favour of his offer at a meeting in Dublin yesterday.
Shareholders will get €5 million, while the State-owned Irish Banking Resolution Corporation will get just €40 million in settlement of a €150 million debt.
Following yesterday’s meeting, it emerged that Siteserv is planning to ask Britain’s Office of Fair Trade to investigate the purchase by French-based Altrad of Generation Hire and Sales in Britain last week.
Generation competes directly with Deborah Services, Siteserv’s main British subsidiary. Both provide scaffolding and other services to the construction industry.
Altrad has bought a number of businesses in this sector recently, and Siteserv maintains that it is concerned about the implications of the Generation deal for competition in the marketplace.
Siteserv confirmed that it received an indicative, non-binding proposal this week from Altrad to purchase its businesses for €60 million.
The bid was subject to due diligence, non-binding, governed by French law and on an eight-week exclusivity period.
The board said it was its considered view that there was no certainty of a legally-binding offer at a price and under conditions that could be recommended to shareholders, and as a result, would maintain its recommendation of Mr O’Brien’s offer, which was made through the Isle of Man-registered Millington.
Shortly after the deal was agreed with Millington last month, it emerged that a number of other bidders had indicated that they would pay more than €45 million for the company.
Altrad said it made a number of informal approaches, but was told that the company was not for sale.
Ray Neilson, chief executive of one of Altrad’s other British businesses, Belle Group, told yesterday’s meeting that he and a colleague first contacted Siteserv’s chief executive, Brian Harvey, in September.
Mr Harvey said he spoke briefly to Mr Neilson in January and received an email just days before the Millington deal was agreed. He added that he would not have commented on whether or not Siteserv was for sale, as that would not have been appropriate.
Chairman Hugh Cooney and independent director Robert Dix defended the sale process after the meeting, arguing that it was robust and delivered the best result possible.
They also defended the role of law firm Arthur Cox, which represented both Siteserv and Millington in the deal, saying it was not unusual.
Shareholders were told that they would receive their cash some time around July and August.
Once Siteserv’s businesses are transferred to Millington, the company will be paid and wound up and the money distributed to the bank and shareholders.
