DUBLIN-BASED stockbroker Merrion Capital yesterday announced a significant restructuring of its shareholder base that will involve three senior executives leaving the business.

As revealed in The Irish Timeslast week, finance chief Michael Hodson, executive director Adrian O'Carroll and head of institutional equities Enrique Curran will leave Merrion.

In a statement yesterday, Merrion said the restructuring would be implemented by way of a “commercial share offer”, which will require the approval of the Financial Regulator.

The three executives are expected to receive a distribution from the €35 million in cash and other assets on Merrion’s balance sheet.

John Conroywill resume his role as chief executive of the business, having stepped down recently to take over its corporate finance arm. Mr Conroy owns about 14 per cent of the business, having co-founded it in 1999.

Shane Nolan, also a co-founder, will become head of stockbroking. New York-based Allen Co will continue as a substantial shareholder.

Merrion said it “continues to trade profitably” and it would “maintain a strong balance sheet” after the transaction is completed.

The stockbroker is believed to have made a profit of €1 million in the first quarter of this year and has been operating at break-even since then.

It is expected to post a profit for the year as a whole, which is a credible performance given the difficult financial markets.

Merrion made a pretax profit of €8 million in 2008, according to its latest filed accounts.

The reshaping of the business will also involve a redundancy programme. Merrion employs about 80 staff.

Commenting on the move, Mr Hodson, who spent 11 years with the company, said: “This restructuring gives others the opportunity to participate in driving Merrion to even greater success.”

It is understood that Merrion intends to retain the scope of activities currently carried out, including its asset management arm.

It is not clear if Merrion Capital will retain its 47 per cent shareholding in Marketspreads, the Irish financial spread betting group.

This restructuring follows a recent strategic review.

Management at Merrion bought the business back in late 2008 from troubled Icelandic financial group Landsbanki Islands.

No sum was disclosed but reports at the time suggested that Merrion’s management paid close to €30 million for Landsbanki’s 84 per cent stake in the business.

This represented a steep discount on the €90 million the Icelandic group had paid since 2005 to acquire Merrion’s shares.