Ennstone offer is not the only bid for Johnston Group

EnnsEnnstone’s plans to more than double its size with the £48.3m acquisition of Johnston Group has suffered a further blow - Johnston has received other offers.

Johnston directors said this morning they were considering other offers for the firm and are “investigating other possible options to maximise value for Johnston shareholders”.

Ennstone also faces opposition from its own shareholders about the sale. North Atlantic Value (NAV) has proposed EGM resolutions that include a strategic review of the company and the appointment of ex-Hanson director Jonathan Scott-Barrett as a member of the board.

NAV fund manager Paul Cameron said: “We don’t believe the Johnston acquisition is in the shareholders’ interests. We’re paying a high premium for a company which the majority is an engineering business that’s losing money. Ennstone doesn’t have the skills in the engineering sector.” Cameron added that NAV was concerned about Johnston’s £14.7m pensions deficit.

Ennstone will hold an EGM to approve the acquisition of Johnston on 1 September.

Cameron said Scott-Barrett would instigate the strategic review on 2 September.