(Alliance News) - Harland & Wolff Group Holdings PLC on Friday confirmed it made an indicative and preliminary takeover approach for Isles of Scilly Steamship Co Ltd, which the latter rejected on Thursday.
Harland & Wolff is a London-based fabrication company, which serves the maritime and offshore industries from yards in England, Northern Ireland and Scotland. Isles of Scilly Steamship operates the principal shipping service from Penzance in Cornwall to the isles of Scilly.
Harland & Wolff said it has been considering the opportunity to build and/or operate ferries to service the Isles of Scilly to Penzance route, which it believes is significantly underserved by its current operation.
"The company believes 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 unequivocally rejected this proposal," said Harland & Wolff.
Harland & Wolff said it continues to consider their options.
On Thursday, Isles of Scilly Steamship said it did not believe the approach was in the best interest of its shareholders.
Due to the announcement, Isles of Scilly is now in an "offer period". Harland & Wolff has until December 21 to announce a firm intention to make an offer for the company, or to announce that it does not intend to make such an offer.
In October, Harland & Wolff said it continued to pursue its proposal for fast ferry and freight services to and between the Isles of Scilly, which are around 28 miles to the southwest of Cornwall.
Shares in Harland & Wolff were up 1.6% to 12.19 pence each in London on Friday late morning.
By Greg Rosenvinge, Alliance News senior reporter
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Harland & Wolff (HARL)