The chairman of Belfast property group Ewart split with his boardmembers over which of two bid offers for the company it should accept.
Chairman Brian O’Connor said he was planning to accept an offer from propertycompany Dunloe House, despite the board’s determination to accept a rivalproposalfrom Moyne, a group backed by Ulster wine bar entrepreneurs.
Both offers are for 81p a share, valuing the company at £25.7m and which the board said offers no premium above the company’s value.
Analysts said the move from O’Connor, who has a 16% shareholding in thecompany, made it highly likely that Dunloe House would be the victor.
In a statement to the stock market, O’Connor said the Dunloe House offerwould provide more certainty to shareholders than Moyne because, along with his16% shareholding, it would have a majority holding.
He added: “I understand that Moyne has shares totalling only 6% so that evenif I were to commit my shares to them there would be no certainty that theycould achieve control of Ewart.”
He added that the Dunloe House deal would allow investors to continue as shareholders with its offer of a possible share or loan note offer.
The Moyne deal offered only cash, he said, adding: “The Dunloe offer affordsshareholders an opportunity to participate in a quoted all-Ireland propertycompany.”
The board issued a separate statement, saying: “O’Connor intends to takethis action against the advice of the company’s independent advisers GreigMiddleton.”
Observers said the decision of O’Connor, who is based abroad, ended thedeadlock between the two bidders.
Philip Moloy, analyst at ABN Amro in Dublin said: “It was fun while it lasted but the deadlock could not go on for ever.” He added: “There really was not a great difference between the two bids and I think thechairman’s position from afar allowed him to see that with a balanced view.”
The two announcements followed a Ewart board meeting on Friday.
PA News 03/03/98
