Construction & Commercial Property News

US investment group buys construction services group ISG in hostile takeover

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Written by: Gavin Thompson | Posted 29 February 2016 18:12

US investment group buys construction services group ISG in hostile takeover

US investment group Cathexis has completed an £85-million hostile takeover of international construction services group ISG.

ISG, previously known as Interior Services Group, provides fit-out, refurbishment, engineering, design and project management services to customers across the world including from offices in Stoke Gifford, Bristol.

Admitted to trading on the London Stock Exchange’s AIM market since June 1998, ISG reported 2015 revenues of £1.6 billion and a market capitalisation of £85.5 million at the offer price.

Based in Houston and led by CEO William Harrison, Cathexis has been a significant shareholder in ISG since March 2012.

It was the largest investor in ISG’s March 2015 fundraising and held 29.5 per cent of ISG’s shares prior to launching its hostile cash offer in response to a significant fall in the ISG share price.

The offer was initially launched at a price of 143p per share and was eventually raised to 171p per share, before being declared unconditional on 17 February 2016, the last possible date under the timetable imposed by the Takeover Code.

A team at international investment bank Altium, led by managing director Stephen Georgiadis, director Tim Richardson and associate Declan O’Connor, acted as exclusive financial adviser to Cathexis on the deal. This was the fourth UK public company takeover that the investment bank has advised on in the last 12 months.

William Harrison, CEO of Cathexis, said: “Cathexis is a long-standing supportive shareholder in ISG. Under our stewardship, we believe the company has a strong future and we are very pleased to have completed the acquisition. Altium’s strategic and tactical advice, its management of the transaction and its knowledge and application of the Takeover Code were invaluable to us.”

Stephen Georgiadis, managing director at Altium, said: “We are delighted to have assisted Cathexis in consolidating its control of ISG. The stability provided by the commitment of a well-funded reference shareholder like Cathexis should ensure a strong and promising future for ISG.”

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