A major shareholder at ISG has launched a £71m takeover bid for the troubled contractor.
Cathexis, the Texas-based investment group that currently holds a 29.5 per cent stake in ISG, announced today that it would offer 143p per share, a 17 per cent premium on its closing price on Thursday.
In a statement released today, Cathexis said ISG was “more suited to private ownership than a public market listing” and the takeover would allow it to invest in attractive growth opportunities and enhance the long-term potential of the company.
Cathexis also said it was unlikely the proposed takeover would cause major changes to the company’s management, with Cathexis saying it attached “great importance to the skills, expertise and knowledge of the existing management and employees of ISG”.
Cathexis also confirmed that any takeover would not result in a change of location for the business.
The takeover bid comes after a tough year for ISG. In September the firm reported a £27.8m loss for the year ending 30 June 2015 and earlier this month the company’s construction arm was hit with a £5m profit warning which saw its shares fall 32.1 per cent.
Cathexis acquired a further 2,000,000 shares following the profit warning.
It is the second takeover bid Cathexis has launched in the last seven months.
In June, the company approached ISG with an offer but was knocked back by its board on the grounds that the approach “significantly undervalued the company”.
Cathexis is seeking 90 per cent approval from ISG shareholders.