A group knocked back in its attempts to buy Red Funnel has said it will "seek to engage" with the cross-Solent operator's new owners before discussing options, including whether or not to set up a rival Isle of Wight ferry firm.
On Friday (September 26), Vectis Ferries Limited announced, for the past 10 weeks, it had been in private discussions with Red Funnel’s advisors and funders about a takeover.
Revealing its offer had been rebuffed, the company, formed of ex-Red Funnel directors, said it felt "used", in order to up the offer from an alternative buyer.
It warned if reengagement proved impossible, it has "credible options" to launch a competing ferry service of its own.
Read more:
- "Bad day for the Island" — MPs’ gloomy reaction to Red Funnel sale
- Red Funnel sale raises 'serious questions', warns Island council leader
- Red Funnel sale latest: Reaction as ferry firm changes hands
- Takeover bid for Red Funnel 'rebuffed' after 10 weeks of talks
- Island ferry firm Red Funnel SOLD to private equity firm
Following the acquisition of Red Funnel by private equity firm Njord Partners, Vectis has said no more about the prospect of starting up a rival ferry firm.
Patrick Seely, chair and a former Red Funnel non executive director, told the County Press that Vectis wants to see how Njord responds, before looking at 'alternatives'.
He said: "Vectis has a very strong business plan which can transform cross-Solent travel, while at the same time bring many new jobs to the Island.
"Vectis will seek to engage with Njord Partners to encourage them to adopt its plan for the benefit of all parties.
"Vectis wishes to emphasise that the re-investment now required in the Cowes to Southampton route provides a ‘once in generation’ opportunity to change cross-Solent travel for the better.
"It calls on all stakeholders including the company, the new investor, the MPs, STUG and the IW Council to join it in working to deliver a solution which will result in real change rather than perpetuating a traditional ferry operation.”
Mr Seely said the sale only "perpetuates" the private equity story, which for the last 25 years has "not served the Island community well."
Vectis was formed in May and also has Peter Morton, the founder and non executive director of boat building firm, Wight Shipyard, as a director.
Read more:
Red Funnel's former CEO and chairman Kevin George and former chief financial officer Graham Barnetson, as well as shipping industry consultant James Walton, also form part of the group.
Vectis has previously said it is ready to commit to invest more than £100 million in next generation ferries and new shoreside facilities.
Proposals also include new aluminium vehicle ferries, cutting ferry times and creating skilled jobs at Wight Shipyard.
Share