Cathexis UK Holdings said that it was offering ISG shareholders the benefit of certainty when they currently had none.
ISG reported a £27.8m loss for the year to 30th June 2015 and earlier this month issued a warning that its construction division was going to make another loss this year.
Cathexis’ offer price of 143p per share values the existing issued ordinary share capital of ISG at approximately £70.8 million in aggregate and represents a premium of 17.2% to the 122p at which ISG closed yesterday (10th December 2015).
Cathexis already has 29.53% of the existing issued ordinary share capital of ISG.
Other ISG shareholders can expect to receive formal offer documentation within the next 28 days.
ISG chief executive David Lawther is unlikely to think much of the offer. He bought 7,000 shares at a price of 142.5p a couple of weeks ago. He now owns a total of 94,450 shares, or 0.2% of ISG's issued share capital.
Corporate development director Gregory Aldridge also bought 10,000 shares at the same price. Like Mr Lawther, he also owns 94,450 shares.