The revelation that a ‘fair deal’ was on the table emerged as the prospective buyer Antopodean Holdings issued a statement at odds with ISG’s board account of events leading to the decision to appoint administrators.
The firm claims finances were in place to save ISG and it remained committed to a deal with ISG owner Cathexis despite due diligence uncovering a more perilous financial predicament than expected.
Antipodean Holdings director Andre Redinger said: “We had been working on the deal for over six months and despite finances being in place, ISG has chosen to go into administration.”
He described it as an unfortunate end to what had the potential to be a fruitful acquisition.
His account is contrary to ISG chief executive Zoe Price’s view. In a letter to staff she said it had not been possible to conclude a sale, as the purchaser could not satisfy the funding needed to recapitalise the business.
Redinger said that Antipodean had a robust turnaround plan in place and was confident it could save jobs and return ISG to growth and profitability.
He said: “This plan was developed in concert with leading industry professionals and, in time, would have returned ISG to full profitability.
“Contrary to the email sent out to ISG staff, we were ready to strike a deal that would have secured the company’s future and the jobs of its employees.
“While our due diligence showed that ISG was in a much more financially perilous state and the company’s future much graver than we originally suspected, we were still committed to finalising a fair deal.
“While that resulted in an updated turnaround plan and working capital solution, from our perspective, the deal was still progressing.”
Redinger added: “We were also still in the midst of good-faith negotiations with ISG’s current ownership when it suddenly stopped communicating with us on 12 September.
“At no stage were we formally made aware of this decision to cancel the deal or to liquidate the business.”
“We firmly believe that ISG had more than enough talent and potential to reclaim its rightful space in the UK and global construction sectors,” said fellow Antipodean Holdings director James Overton.
“ Our turnaround plan would have made full use of that talent, not only to protect jobs but also to ensure that they could help rebuild and position ISG for long-term growth.
“ISG staff and the supply chain should be infuriated that the company’s ownership failed to see that and act in their best interests.”
He said that Antipodean Holdings remained committed to identifying, and investing in, businesses across a broad spectrum of UK industries.
