Xmas for Carroll

Billionaire investor Liam Carroll may boost his holding in Irish Continental Group (ICG) to nearly a third without putting his hand in his pocket.

Liam Carroll.

Carroll, who is already ICG’s largest shareholder, will take his stake to 32.51% if the ferry owner gets backing to make a further allotment of redeemable shares and buy back up to 10% of its stock.

ICG says it will buy back a maximum of 2.46 million shares if the move is supported by shareholders.

Assuming Carroll’s South Morston Investment does not dispose of any ICG shares his holding would increase from 29.25% to 32.51%, ICG says.

Under normal circumstances this would require him to launch a mandatory offer for the company. ICG’s takeover panel, however, says it is willing to waiver the obligation if the majority of shareholders agree.

In a statement this morning IGC says it wants to buy back shares and make a further allotment of redeemable stock, “with a view to enhancing shareholder value”.

One analyst tells TradeWinds ICG has made its move now as it has managed to significantly reduce its debt of late.

He said: “The company has restructured and is highly cash generative now. Its net debt position is improving and will probably have a net cash position by 2010.

“The fact it is such a strong cash generator now means it is going to try and give some of it back to the shareholders.”

Shares in ICG fell 2.36% to EUR 17.10 ($24.58) each at the time of writing.

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