黑洞社区

US investor Cathexis has triumphed in its ten-week battle to buy UK contractor ISG, after snapping up 58% of the builder鈥檚 shares, taking it over the 50% threshold required.

The 拢85m offer is now unconditional, and Cathexis will take ISG private and delist it from the London stock exchange providing it receives further acceptances taking it over 75% support.

This morning ISG鈥檚 board reluctantly u-turned and backed the bid after it learned ISG had amassed a 48% stake in the business and was closing in on the 50% mark.

The ISG board, led by chief executive David Lawther, advised investors to accept the bid but said it still believed the offer 鈥渦ndervalues鈥� the company.

But it argued it was now in the best interests of shareholders to accept the deal given Cathexis鈥� significant and growing stake in the business.

In an update this afternoon, ISG鈥檚 board said: 鈥淭he board of ISG repeats its statement that it believes accepting the offer to be in the best interests of the Shareholders as a whole and unanimously recommends that Shareholders who have not already done so accept the offer.鈥�

ISG鈥檚 board initially rejected both offers by Cathexis for the company, including the latest offer of 拢1.71 a share, or 拢85m.

Cathexis鈥� original offer, made in December, was for 拢1.43 a share, or 拢71m in cash.

Tony Williams, analyst at 黑洞社区 Value, said: 鈥淭he Americans have played a blinder and have pretty much herded ISG to the exit for a knock down price.鈥�