LISBON, Portugal–(BUSINESS WIRE)–#Capital–Oxy Capital SGOIC, S.A. has published its comments on the half-year results of Irish Continental Group plc (“ICG”), released today, which support and confirm Oxy Capital’s thesis that ICG can comfortably generate run-rate pre-IFRS 16 EBITDA of at least €150m and free cash flow before interest costs and debt service above €120m, implying an unlevered yield of at least 9% at the €8.00 offer price.
Strong underlying performance, with sales up 16% and pre-IFRS 16 EBITDA up 3.7% year on year, was masked by one-time events: the final phase of rising ETS costs, sharply higher fuel surcharges and the EU Entry/Exit System rollout. Oxy Capital expects a materially more favourable second half, which the Company itself notes typically accounts for approximately two-thirds of Group EBITDA.
In the release, Oxy Capital states: “In our view, the shareholders in ICG already possess ‘an alternative capable of delivering superior value’: retaining the shares and distributing the Company’s cash generation to shareholders.”
Distributing all of ICG’s net income, which materially understates free cash flow, would equate to a yield of 6.3% on the 2025 figure and at least 7% on Oxy Capital’s 2026 expectation at the current price, for an essentially unlevered business. Oxy Capital adds that the absence of clear capital distribution targets, of an investor relations function and of earnings calls, each within the Board’s control, has contributed to a depressed share price.
The release also responds to the public comments of the Independent Board of 18 August.
Oxy Capital’s position is unchanged: €8.00 does not adequately compensate shareholders for forgoing future returns, and it encourages all other independent shareholders to reject the MBO Bid by casting their votes AGAINST the resolutions proposed at the Scheme Meeting and Extraordinary General Meeting convened by the Company to be held on 28 August 2026.
A full copy of the press release can be found on Oxy Capital’s website and by clicking here.
Contacts
Enquiries:
Leonel Lucas
leonel.lucas@oxycapital.com
+351 912 347 055
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