Moonduster consortium buys up 500,793 shares in ICG battle

The Philip Lynch-led Moonduster consortium told the stock market yesterday that it acquired 500,793 shares in Irish Continental Group (ICG) on September 21st for €25.20 each in cash and the offer of a top-up payment over the next 18 months.

Details of significant share transactions at Irish public companies are usually made within 24 hours and the 10-delay in this announcement surprised advisers working on the protracted takeover process.

ICG is the subject of a two-way takeover battle between Moonduster, which comprises One51 Capital and the Cork-based Doyle shipping group, and Aella, a management buyout offer led by chief executive Eamonn Rothwell.

In addition, property developer Liam Carroll has built a 25.31 per cent stake without making a bid for the ferry company.

"This [the delay in announcing the details of the share buying] hasn't made an already difficult situation any better," said one senior source close to the process.

Moonduster said it bought the shares from Octavian Master Fund and Octavian Special Master Fund.

The consortium has agreed to pay the excess of the highest price it might pay for ICG shares over the next 18 months above €25.20.

In the event that Moonduster sells its stake in ICG over the same timeframe at a price above €25.20, Mr Lynch's group has agreed to pay Octavian 60 per cent of the excess.

On September 26th, Moonduster paid €25.40 for 100,000 ICG shares, indicating that Octavian already stands to net up to €100,159 from the top-up arrangement, which is rare in an Irish context.

Moonduster, which lodged a €22-a share offer for ICG in June, said the top-up arrangement would be extended to all of the company's shareholders under any revised offer that it might make.

The consortium, however, reiterated its view that there "is no prospect at this time of any Moonduster scheme being successful". ICG's independent directors are believed to be in talks with Moonduster with a view to it tabling a new offer.

Mr Carroll, meanwhile, continues to mop up shares in ICG. The property developer announced yesterday that he bought 128,000 shares last Friday at €25.75 apiece. He now owns 6.1 million shares in ICG, giving him a 25.31 per cent stake in the ferry company. ICG's shares closed yesterday unchanged at €25.75 apiece in Dublin.