War of words over collapsed ISG sale
Blame has started to fly between the contractor and the company that was in talks to purchase ISG following the failed deal.
Tensions regarding the reasons behind the unsuccessful sale arose following Construction News's report last night that six ISG companies had sought to file for administration after months of challenging negotiations between the involved parties.
Antipodean Holdings, founded this year by South African business owner Andre Rudiger and Australian James Overton, has been in talks with ISG's American owner, Cathexis, for over six months in an effort to purchase the company.
In an email sent to employees late yesterday, ISG CEO Zoe Price expressed, “I want you to understand that there have been considerable efforts over the past few months to arrange a sale of the company.”
"After weeks of speculation, I can now clarify that we were unable to finalize the sale because the buyer could not secure the necessary funding to recapitalize the business."
However, Rudiger mentioned that ISG suddenly stopped all communications on September 12.
He asserted that even though he found out the company was in worse financial trouble than they first thought, Antipodean Holdings remained dedicated to completing the agreement.
“Unlike what was stated in the email sent to ISG staff, we were prepared to reach an agreement that would have ensured both the company’s future and the employment of its workers,” he stated.
Antipodean's thorough investigation revealed that ISG was in a much worse financial situation than we had initially thought, and the outlook for the company was much more serious, according to Rudiger. However, we remained dedicated to reaching a fair agreement.
"Although this led to a revised plan for recovery and a solution for working capital, we believe the deal was still moving forward."
He voiced his disappointment that, even though the necessary funds were available, ISG decided to enter administration.
“It’s disappointing to see this turn out the way it has, especially since the acquisition had so much promise. Antipodean had a strong recovery strategy ready and believed we could preserve jobs while steering ISG back to growth and profitability,” he stated.
"This strategy was created in collaboration with top experts in the field and, over time, would have led ISG back to complete profitability."
He stated that Antipodean was not informed about ISG's choice to cancel the agreement or to shut down the business.
James Overton, a fellow director, expressed, “We strongly believe that ISG possesses ample talent and the capability to regain its rightful position in both the UK and international construction markets.”
“Our recovery strategy would have effectively utilized that talent, not just to safeguard jobs but also to empower them in the process of rebuilding and positioning ISG for sustainable growth in the future. It’s completely understandable that ISG employees and the supply chain might feel angry that the company’s owners didn’t recognize this and take actions that were in their best interests.”
In her email, Price mentioned that the American owner, Cathexis, had looked into options like refinancing and selling off separate business divisions, but none of these approaches were successful in the time needed.
