The Doyle-led consortium that wants to take over Jurys Doyle is still planning to issue a firm offer this week, despite confirmation that Seán Dunne has not yet paid for the hotel group’s Ballsbridge site.
Jurys Doyle confirmed yesterday morning that Mr Dunne's lawyers had said it was not "appropriate" to close the ¤260 million Ballsbridge sale yesterday as planned.
In a statement to the stock exchange, the firm said Mr Dunne's lawyers had pointed to "the fact that documentation and legal due diligence has yet to be finalised to the satisfaction of the provider of debt facilities to Mr Dunne in respect of the transaction".
Mr Dunne's proposed purchase is being backed by Ulster Bank, the same bank thought to have advanced funds for his stakebuilding in Jurys. The two loans have, however, been ringfenced, and are thought to have been backed by different assets.
Ulster Bank did not comment on the matter yesterday but there were no signs that the bank is uncomfortable with its position. Jurys said Mr Dunne's lawyers, understood to be Arthur Cox, believed that they should be able to complete the deal "in early course".
A spokeswoman for Jurys could not comment beyond the statement, but it is thought the company is satisfied that it has supplied all necessary documentation to Mr Dunne.
The firm is, however, known to want to complete the deal as quickly as possible and could thus be expected to facilitate any further requests for information.
Legal due diligence is complicated and can vary dramatically according to the nature of a deal. It includes factors such as reviewing title to lands and the tax implications of a deal.
The sale was approved by Jurys shareholders, including the members of the Doyle-led consortium, at the end of September. Sources close to the Doyle group, which also includes the Beatty family and Elizabeth Nelson, had indicated that the consortium would wait until Mr Dunne had paid over his ¤260million before issuing a firm offer.
One option that would be open to the group at this stage would be to issue a firm offer that is conditional on Mr Dunne's land purchase being completed. The developer is meanwhile, said to be mulling an offer in his own right, possibly with the backing of a private equity house.
Sources say Mr Dunne has liquidated several chunky assets over recent weeks, building up a substantial war chest in the process.
He controls 27.8 per cent of Jurys, although a portion of this stake is held through contracts for difference (CFDs), which do not necessarily confer voting rights. CFDs are purchased on a leveraged basis.
