Company will 'not pursue' Isles of Scilly transport offer

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

A shipbuilding company has announced it will not be making a firm offer to buy the organisation that runs transport links to the Isles of Scilly.

Harland and Wolff (H&W) made an approach last month to potentially takeover the Isles of Scilly Steamship Company Limited (ISSCL).

ISSCL "unequivocally rejected" the proposal and H&W had until 17:00 GMT on Thursday to clarify its intentions.

On Thursday, it said it had "concluded not to pursue this matter".

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

In a statement made via the London Stock Exchange, H&W said: "The company continues to believe 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 had unequivocally rejected its proposal.

"The board of Harland & Wolff has concluded not to pursue this matter and, accordingly, the company does not intend to make a firm offer for ISSCL.

"Meanwhile, the company continues with its plans to offer a fast ferry service on the Penzance-Isles of Scilly route, as well as offer dedicated freight service on this route."

Both H&W and ISSCL have been contacted by the BBC for comment.

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

The two firms are both currently planning to build new ferries to transport passengers and freight to the islands, about 28 miles (45km) off Cornwall.

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, 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.