IAWS co-op has increased its stake in toll roads and waste management group NTR to 26 per cent after buying a further €19 million worth of the company's shares.
But sources last night said that the co-op, which has been building a stake in NTR for the past month, is unlikely to increase its stake beyond 26 per cent.
A number of stockbroking firms operate a market in NTR shares, which are not listed on any stock exchange. IAWS spent €27 a unit on a purchase of close to 711,000 shares.
Since the first week of January, it has invested €125 million in NTR. It holds 6.25 million shares out of the total issued capital of 24 million.
The 26 per cent stake it now holds makes it the company's second-biggest shareholder and places it in a powerful position. IAWS can block any takeover bid, call an extraordinary general meeting, or successfully oppose any special resolutions.
There has been increasing speculation about the reasons behind IAWS investment in NTR. However, it has consistently maintained that it regarded the group as an opportunity to get a good return for its own shareholders.
A spokesman last night said that co-op's board believed NTR to be a "well-run company that is well placed for further growth".
NTR said it welcomed IAWS as a shareholder. "We are pleased that they share our perspective on the potential of NTR's infrastructure-related business," a spokesman said.
NTR's biggest shareholder is its chairman, Mr Tom Roche, who recently increased his original 36.4 per cent stake to 44.8 per cent in two blocks.
Late last month, he spent more than €36 million on 1.5 million shares to boost his stake to 43.2 per cent. That purchase included €23 million worth of shares held by businessman, Mr John Gallagher, who had been involved with NTR since 2001. He has left the company.
Last weekend, Mr Roche invested a further €51 million to bring his holding to its current level.
IAWS owns 10 per cent of agri-business and consumer foods group IAWS plc but is a separate entity to it. Its shareholders include 52 co-ops.
Since last year, it has had a stated strategy of making "strategic investments" designed to enhance shareholder value. Former IAWS plc chief executive Mr Philip Lynch chairs the co-op.
NTR was set up in 1978 and operates a number of toll roads in the Dublin area. It is one of the lead partners in a consortium that is bidding for a number of public-private partnership road-building projects. It is also involved in energy, telecoms and waste management through Greenstar, the business it bought from Mr Gallagher.
