Prime’s offer of 273p per share values IEG’s share capital at approximately GBP202 million. The acquisition of IEG, which supplies gas to Guernsey, Jersey and the Isle of Man, will make Prime one of the largest independent gas transporters in Britain.

IEG had been looking towards a sale after appointing HSBC and Investec last year. The company then undertook a strategic review which culminated in a confidential approach to a number of potentially interested parties. This resulted in a competitive bid process and ultimately led to Prime’s offer.

We feel this offer is attractive for our shareholders, as it provides certainty and value at a price that is unlikely to be achieved in the market in the near future, said Thomas Scott, chairman of IEG. We have assurances from Prime that the existing employment rights, including pension rights, of all IEG employees, will be fully safeguarded.