ISG shareholders rebuff £71m takeover bid

Aaron Morby 2 years ago
Share

Texan investment company Cathexis has extended its offer deadline to ISG shareholders in the latest takeover twist for struggling contractor ISG.

Shareholders were given until yesterday to decide whether to accept a £71m takeover bid offering 143p a share, a premium of 17% on the share value before the bid.

But ISG’s board has managed to convince most shareholders to rebuff the approach winning the first round of the takeover battle.

This morning Cathexis revealed it had only managed to entice 1.58% of ISG’s shareholders into accepting the offer.

This builds its stake in ISG to just over 31% based on its existing holding in the contractor.

Cathexis did not raise the offer despite the poor take-up but has extended the deadline by a fortnight to 25 January.

ISG’s board led by chief executive David Lawther previously urged shareholder to reject the bid warning that it significantly undervalued ISG and its future prospects.

The board seems to have won over shareholders despite a blunder in its initial defence document, which  based its argument on analysts’ profit forecasts for 2016 and 2017 rather than substantiated company forecasts. This meant the firm had to redraft the document at the turn of the year.

ISG reported a £28m loss in the year ended 30 June 2015 on revenue of £1.6bn, with consolidated net assets of £57m.

At the end of last year, the firm issued a profit warning that its poorly performing construction division was expected to run up a loss of £5m in the first half of the year.

The outlook for its fit-out and engineering service divisions remained good.

 

Latest news

Specialist trade bodies petition No 10 for payment reform

Unprecedented coalition of trade associations urge Prime Minister to act
3 hours ago

Contractors fold before £2m site death fines

Judge hands out huge fines but firms are no longer in business
20 hours ago

Kier lands lead role in £19.4m Glasgow theatre revamp

Work to start in September revamping the Citizens Theatre
5 hours ago

CMS wins £10m glazing deal on BAM’s Atlantic Square job

Major package win on £100m scheme
11 hours ago

Green light for £350m Leeds South Bank scheme

Preparation works can now start with construction planned to start next year
1 day ago

Mace go-ahead for London £150m Hanover Square scheme

Great Portland Estates JV secures pre-let to start building work on Mayfair scheme
19 hours ago

Growth to rebound to 2.7% next year after flat 2018

30% fall in office activity over two years offset by surge in infrastructure
20 hours ago

Crystal Palace to start £100m main stand next summer

Iconic main stand plan to go to London mayor to rubber stamp
1 day ago

Builder murdered by colleague on central London site

Murder hunt under way after construction worker bludgeoned by colleague on Hatton Garden roof
4 days ago

Barratt to pay for post Grenfell cladding upgrade on Croydon block

Government urges more house builders to pay for safety work rather than leaseholders
4 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
2 weeks ago

Carillion’s Midlands Pf2 hospital to cost extra £125m

Skanska confirmed for Midlands Metropolitan Hospital as trust waits for Government go-ahead
4 days ago

BAM Nuttall fined £900,000 after painter tears ligament

Court hears how worker plunged through station waiting room roof
5 days ago

Builders told to wait over a year for brick orders

Smaller builders warn of rising materials prices and lead times
4 days ago

14-storey Milton Keynes ‘sun hotel’ approved

Hotel La Tour gets nod for tallest building in Milton Keynes city centre
4 days ago

Hill bags £41m Homes England direct commission job

Public land direct commissioning scheme entails building 160 homes
4 days ago

KBR buys Carillion’s Aspire Defence business

Deal secures workforce and future of Project Allenby Connaught contract
5 days ago

New Seddon built Coronation Street set makes debut tonight

Contractor has been working on Weatherfield extension since last summer
4 days ago

Betting Spy: Bookies keep under-estimating Burnley

The Clarets are a big price at 5/2 to beat sinking Stoke
4 days ago

London roads upkeep JV loses court battle with TfL

High Court backs TfL in rates row with Colas, VolkerHighways and AECOM
5 days ago

Keltbray looks overseas for new rail work

Contractor targets Canadian market as UK rail electrification work dries-up
5 days ago

Designs revealed for £100m Glasgow office complex

Demolition work to start later this year at city-centre site
5 days ago

Work to start in June on £50m Aberdeen FC stadium

Football academy will be built before new 20,000 sq ft stadium
5 days ago

Plans go in for new hotel at Sheffield Velocity Tower

Seven-storey Ibis planned to complete city centre development
5 days ago

More than 500 towers planned for London

Slight slowdown in construction starts and completions
5 days ago

Spie to sell overhead power line division to Keltbray

Spie to quit sector just three years after buying Leven Energy Services
6 days ago

Over 100 MPs back ring-fencing of retentions

MPs supporting Aldous Bill retention reform jump 10-fold in wake of Carillion
6 days ago

Brick makers confident of meeting rising demand

Manufacturers pledge to continue boosting capacity as reports of site shortages continue
6 days ago

Hammerson pulls out of Intu takeover

High Street retail wobble scuppers shopping centre developer merger plan
6 days ago

United Living wants to meet new suppliers and subcontractors

Drop-in event to outline new work opportunities in Essex: Register now
6 days ago

Contractor services