The Doyle consortium that wants to take over Jurys Doyle moved closer to gaining control of the company yesterday after making a formal offer of €1.25 billion and then buying more shares in the market.
The group, named JDH Acquisitions, now owns or can rely on the support of almost 47 per cent of Jurys. JDH needs the backing of 50 per cent of Jurys shares if its offer is to succeed. The consortium said last night that it could rely on support in respect of 49.2 per cent of the company when management share options are considered. These options will not, however, be triggered until JDH reaches a 50 per cent approval rate on its own account.
The Doyle consortium now has 28 days to issue a formal offer document but the group, which is taking advice from Goldman Sachs, is expected to move before that deadline expires. Its offer of €18.90 per share has been backed by the independent directors at Jurys.
Attention must now turn to the intentions of property developers Sean Dunne and Liam Carroll, who between them control 36.1 per cent of Jurys Doyle. Sources say neither will sell at €18.90, with both likely to be either mulling bids themselves or holding out for a higher price from JDH. Some clarity on this is expected before the end of the week.
Mr Dunne, who has purchased some of his 27.8 per cent holding at €19.50, has held bid discussions with private-equity house Orion. Some in the market believe that if Mr Dunne does not make an approach, Mr Carroll will look at buying his shares and bidding alone. Any new approach would have to come at a significant premium to €18.90 if it were to tempt the Doyle consortium. JDH could be entitled to payments of up to €12.5 million if a rival bid were to succeed.
Shares in Jurys were busy yesterday, with considerable volume recorded outside the stock purchased by the JDH consortium.
Particular focus fell on a block of 750,000 shares, or about 1.2 per cent of the company, which changed hands at €19.20. The identity of the buyer will be disclosed today. Shares closed at €19.10 last night, up 40 cent.
Mr Dunne has meanwhile agreed a new date with Jurys for closing his purchase of lands at Ballsbridge.
The deal to buy almost five acres from Jurys had been due to close on Tuesday but was delayed upon request from Mr Dunne's solicitors. It will now be concluded this day week.
"Property transactions of this nature are complex involving much legal and administrative detail and as a result can often take time to bring to final completion," Jurys said in a statement issued last night.
When outlining their support for the JDH bid, the independent directors at Jurys said recent stakebuilding at the firm could have "implications" for its ability to remain public.
Stock exchange rules dictate that 25 per cent of a public company's shares are in free float. This may not technically be the case at Jurys at the moment, leaving open the possibility of a forced delisting.
JDH could meanwhile request a delisting if it managed to reach a 75 per cent approval rate. The rights of other shareholders remaining on the register in such a situation would be reduced.
The JDH bid outlines the consortium's plans to run Jurys as a hotel business but it is also clear that JDH is valuing some of the group's hotels as property plays rather than businesses.
The consortium is expected to proceed with plans already outlined by Jurys to dispose of the Berkeley Court Hotel and the Montrose Hotel. The Berkeley Court site adjoins the Ballsbridge site being bought by Mr Dunne.
