Bank of Ireland Group told the Irish Stock Exchange yesterday that it had increased its holding in Barlo, the manufacturing company that is the subject of a management buyout (MBO) approach.
In a statement to the market, the bank, which was already Barlo's biggest shareholder, said it had purchased 13,400 shares in the company for 33 cent a share on Friday, bringing its total holding to 26,682,780 shares, or 15.24 per cent of the company.
Last night's closing price of 35 cent valued the bank's stake at slightly more than €9.3 million.
There was some activity in Barlo on Friday, with over 532,000 shares traded on the Dublin market.
Its price reached 35 cent at one point before closing one cent up at 34 cent. No other purchasers had declared an interest last night.
Last July, Barlo chief executive, Dr Tony Mullins took the first step on the road to an MBO and made an indicative offer of 30 cents a share for the company.
At the time, both parties said there was no certainty that his move would lead to a formal bid being made for the group. An offer of 30 cent would value Barlo at €52.5 million.
Analysts subsequently said an offer of 30 cent would undervalue the company, on the basis that it was generating cashflow of €15 million to €17 million a year.
They argued that a more realistic value would be 40 cent a share, which would put a price-tag of €70 million on the company.
The board established a sub-committee of chairman, Mr Niall Carroll and Mr John Farrell, to consider any offer that might emerge. The MBO process has not been advanced since July.
Barlo's core activity is manufacturing and selling radiators, which it primarily sells to house builders. It also owns plastics company, Athlone Extrusions.
Dr Mullins personally holds 763,000 shares in the company, while his family holds 4.965 million shares through a company, Syden Investments. The total holding comes to 2.3 per cent of the group.
Deputy chairman, Mr Aidan Barlo, holds 5.1 million shares in the group. Other shareholders include AIB, Mr Dermot Desmond and London-based Ennismore Fund Management.
