Scilly transport company rejects takeover approach

The Scillonian III has taken passengers between Penzance and the Isles of Scilly since 1977

The company that runs all ferry and plane services to and from the Isles of Scilly has "unequivocally rejected" a takeover proposal from a rival firm.

Harland and Wolff (H&W) made an approach for the potential acquisition of the Isles of Scilly Steamship Company Limited (ISSCL).

H&W said it was "disappointed" its proposal had been rejected.

It has until 21 December to make clear if it intends to make a firm offer.

The two firms are both currently planning to build new ferries to transport passengers and freight to the islands, 28 miles off Cornwall.

Harland and Wolff announced its plans to build new ferries connecting the islands with Cornwall in August

In April, ISSCL, which has run shipping services to Scilly since the 1920s, announced it has taken out a private £33.6m loan to pay for three new vessels.

In August, shipbuilders H&W announced its plans to run the service and build new boats using £48m of government levelling up funding that has not yet been allocated.

The IOSCC plans include a new passenger ferry Scillonian IV and cargo vessel

The board of the ISSCL confirmed it had: "Received, and unequivocally rejected, a preliminary approach from Harland & Wolff Group Holdings plc regarding a possible offer to acquire the entire issued and to be issued share capital of the company.

"The board of the company does not believe that the approach from H&W is in the best interests of the company's shareholders."

In response, H&W confirmed in a statement through the London Stock Exchange it had "made an indicative and preliminary approach to ISSCL regarding a possible cash offer for the entire issued and to be issued share capital of ISSCL."

It added: "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."

'Genuinely worried'

Steve Sims, Isles of Scilly councillor and lead member for economy, tourism and transport, said he was "surprised but not shocked" by news of the bid, and that "people are genuinely worried" about the future of transport links.

He said: "The council does not have sufficient information to be positive about this. At the moment it is quite a pessimistic outlook I think.

"There is a lot of speculation about what all the companies involved are going to do. There is no hard information and people are genuinely worried."

The process is now being run in accordance with the Takeover Code, and H&W has until 17:00 GMT on 21 December either to announce a firm intention to make an offer, or to announce that it does not intend to make such an offer.

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