One51, the waste and infrastructure group headed by Philip Lynch, has taken a 5.64 per cent stake in Irish Continental Group.
ICG is currently the subject of an €18.50 per share management buyout led by chief executive Eamonn Rothwell and backed by AIB. The High Court yesterday approved the next stage in the €471 million buyout, which is the calling of an extraordinary shareholders' meeting to approve the buyout.
One51, which is the former IAWS Co-op, disclosed yesterday through Davy Stockbrokers that it had bought over 1.3 million shares at €19.25 and €19.50 on Thursday and yesterday.
A spokesman for One51 declined to comment yesterday.
A spokesman for the management buyout consortium said: "We are busy at the moment finalising the offer document, which will issue on Tuesday. The scheme of arrangement is proceeding and we are confident of getting the support of shareholders."
One51 has a track record of holding significant minority stakes in infrastructural businesses such as National Toll Roads and market sources said that it would be uncharacteristic of the group to take a speculative stake in ICG in anticipation of a rival bid emerging. ICG shares are up almost 24 per cent since the buyout was unveiled last week.
Shareholders are due to meet in Dublin next month to approve the scheme of arrangement for the buyout.
The offer involves the acquisition for cash of ICG by Aella plc, a newly-formed company owned by senior management.
Management may offer shareholders in ICG €18.50 per unit, made up of one ordinary share and three redeemable preference shares.
Ms Justice Mary Laffoy yesterday made orders for a meeting of ICG shareholders to take place in the Berkeley Court Hotel, Dublin, at 3.15pm on April 12th, and for a meeting of Aella shareholders to take place 15 minutes later on the same date and at the same venue.
The matter will be mentioned in court again on April 16th.
The €471 million valuation of the company includes options and shares to be issued.
Mr Rothwell owns more than 10 per cent of ICG. He and other members of his team - Gearóid O'Dea, Tony Kelly, John Reilly and Tom Corcoran - own 14 per cent of the company in total.
The other main shareholders in ICG include AIB, Schroder Investment Managers and Zurich Financial Services.
Mr Rothwell also owns just over 82 per cent of the takeover vehicle Aella and the deal will be funded through debt from AIB.
This includes €499 million as well as €90 million in loan notes. Management is also rolling over its shares and options with a value of about €50 million.
