Top managers in SIAC, which is among the oldest and biggest construction companies in Ireland, have increased their stake in the business to 30 per cent from 10 per cent.
At almost the same time, two members of the Feighery family, which has controlled the former South of Ireland Asphalt Company for about 70 years, have sold their 25 per cent stake in the business. Former managing director Paul Feighery and John Feighery, a priest, are sons of the late Denis Feighery, who bought the business in the 1930s.
The two transactions were carried out through a new vehicle, SIAC Holdings Ltd, which was established with the purpose of carrying the transfer of shares.
It is understood that the managers, led by managing director Finn Lyden, have no intention of increasing their holding. Others involved include finance director Terence Ryan, and directors Sean McGettigan, Hank Fogarty and Pat Ahern.
The value of the stake taken out by Mr Lyden and his colleagues is not known, although the latest available set of accounts indicates that the shareholders' funds in the SIAC construction group were worth €33.86 million at the end of 2004.
That could place a value of some €10 million the managers' stake, although the transaction took place at the start of January, when shareholders' funds are likely to have risen thanks to trading during 2005.
SIAC has been a beneficiary of the building boom and its website suggests it now has annual sales of €200 million, up from €163.42 million in 2004. Profits are assumed to have risen last year. However, it is not known whether the managers were obliged to pay a premium to acquire an additional 20 per cent share of the company. The managers acquired 10 per cent of the company in 1999.
A statutory declaration filed in the Companies Office indicates that Paul Feighery and John Feighery each sold their interests in the business on February 21st of this year.
That document indicates that SIAC Construction gave a loan for €7.43 million to SIAC Holdings as a guarantee in respect of the sale.
It was not possible yesterday to determine whether this sum reflected the full valuation on the shares sold by the brothers. Mr Lyden declined to comment on the changes in the company.
Mr Paul Feighery had the biggest stake of the two brothers, reflecting his control of a company called Ederbach Ltd, whose interest in the business was sold as part of the transaction.
Another six members of their family retain a controlling 70 per cent interest in SIAC, which had pretax profits of €4.5 million in 2004.
Established in Cork in 1913, the company has a workforce of more than 950 people in Ireland and Britain. It employs 550 more through sub-contractors. Its contracting services include the manufacture and laying of road materials, civil engineering and commercial development.
