Isles of Scilly shipping firm rejects takeover bid

The Isles of Scilly Steamship has announced that has rejected a takeover approach from shipbuilder Harland & Wolff.

The company, which operates the main shipping service from Penzance in Cornwall to the Isles of Scilly, said a preliminary approach has been made regarding a potential full takeover by Harland & Wolff.

“The board of the company does not believe that the approach from H&W is in the best interests of the company’s shareholders,” the Isles of Scilly said.

Harland & Wolff has until December 21 to announce a firm intention to make an offer for the company, or to announce that it does not intend to make such an offer.

Last month Harland & Wolff said it will continue to pursue its proposal for fast ferry and freight services to and between the Isles of Scilly.

The shipbuilder issued a statement this morning.

It said: “As previously announced, the company has been considering the opportunity to build and/or operate ferries to service the Isles of Scilly to Penzance route, which it believes is significantly underserved by its current operation.

“The company believes there is a clear strategic, operational and financial rationale for the proposed acquisition in pursuit of this and is disappointed that the board of ISSCL unequivocally rejected this proposal. The board of Harland & Wolff continue to consider their options.

“The making of any firm offer would be subject to the satisfaction of customary pre-conditions, including due diligence and there can at this stage be no assurances that any offer will be made, or the terms of any such offer, even if these pre-conditions are satisfied or waived.”