The tussle at Real Estate Opportunities continues, with shareholders blocking a move that would have allowed Treasury Holdings to increase its stake in the company without mounting a bid.
At the EGM last week a majority, including Dawnay Day and former Dunloe Ewart chairman Noel Smyth, voted against a resolution that would have given Treasury a waiver from its obligation to make a takeover bid if its stake increased as a result of the company buying back its own shares.
Treasury, which is owned by Irish property magnates Richard Barrett and John Ronan, holds a 35% stake.
“We felt enough was enough and it was important to stop Treasury getting creeping control,” said Guy Naggar of Dawnay Day. The merchant bank holds a 29% stake in REO.
“We think the company should buy in the zero-dividend preference shares, buy in the converted unsecured loan stock and refinance properties with euros. It would have the double effect of eliminating currency risk and cost less. REO should continue to sell small UK properties and end up being a pure first-class Irish property company,” says Naggar.
REO reported pretax profits of ¤27.7m in the half-year to June.
