There have been over 80 Lotto millionaires in the 10 years of its operation. But last year alone a couple of dozen Irish business people joined this increasingly less exclusive club. For the correctly placed executives rich pickings are to be had from the technology sector in particular, which has scope for rapid expansion and a projected profitability curve to inspire shareholders.
Just recently, for example, BCO Technologies, the Belfast-based electronics company, sought an Irish share quotation, giving its US-born chief executive, Dr Scott Blackstone, a share value amounting to over £1 million along with share options. Rapid Technology is another recent flotation and biotechnology company, Biotrin, will follow soon. Such companies have become recognised as the fast-track way to convert shareholdings into riches. Goodbody Stockbrokers has predicted that technology stocks will account for 5 per cent of the value of the ISEQ over the next two years.
A major company success story this year was one of the trail blazers in the electronics sector Iona Technology. Valued at £235 million, its chairman and chief executive, Mr Chris Horn, received £3.5 million after selling his 10 per cent shareholding when the company floated on the Nasdaq in January. His shareholding is worth over £30 million. "Life continues", Mr Horn, said at the time of the flotation.
The other three directors are Mr Anrai O'Toole, whose stock was worth £22.5 million at the flotation price; Dr Sean Baker, worth £19 million; and Mr Colin Newland, worth £7 million. The shares have varied somewhat in value since, but are tipped by brokers as a good bet for 1998.
Last year, businesses involved in aviation, bread, telecommunications and even newspapers resulted in some get-rich deals. And this year one of the first flotations will be a plastics company, Athlone Extrusions.
This will also be a key year for Ryanair, as it tries to spread its wings into wider markets. Ryanair's chief executive, Mr Michael O'Leary, has a stake in the company valued at over £70 million. The Ryan family's 33 per cent stake in the company was valued at over £100 million.
Elsewhere in 1997 millionaires were created in a whole range of sectors. The par-baked bread concept resulted in a £40 million windfall for its owners, Dr Pat Loughrey and Mr Ronan McNamee, after Cuisine de France was taken over by the IAWS group. Cuisine now has the backing to achieve significant expansion after IAWS recently announced a £15 million expansion package. "The acquisition does not mean anything to me. Cuisine de France was the same the day before as the day after," Mr McNamee said at the time.
Also benefiting from a buy-out, were the main shareholders in TCL Telecom, Mr Sean Melly, Mr Bernard Somers and Mr Liam Booth, became multimillionaires after the company was bought by WorldCom, the US telecommunications company. Mr Melly received £6.7 million, Mr Somers, £3.36 million and Mr Booth, £1.68 million.
And also in the telecommunications sector, software company, Aldiscon, was sold for £57 million to the British company, Logica. Mr Jaye Murray received over £23 million for his stake; Mr Gilbert Little, £9 million, and Mr Vincent Daly, £4.8 million.
Floating on the Nasdaq exchange meant that Mr Denis O'Brien, chairman of Esat Telecom, saw his shareholding valued at over £30 million. And at the Sunday Business Post, the editor, Mr Damien Kiberd; the deputy editor, Ms Aileen O'Toole; and the chief executive, Ms Barbara Nugent; each received £1.1 million from Trinity International Holdings for their shares in the paper. And the list goes on. Marlborough International man, Mr David McKenna, was paid £4 million when his recruitment company was floated in October. The company was bought for £6,000 in 1992. His remaining stake is worth about £10 million.
And Ms Carol Moffett received £11 million after Moffett Engineering was sold to Powerscreen International for £23 million in September.
Following the acquisition of Woodchester Investments by the US group, GE Capital, Mr Craig McKinney was paid a total of £7.5 million for his shares and share options
The chairman of the London-based Ritz Music Group, Mr Mick Clerkin, was paid about £1 million after his wholly-owned Irish company, the Dublin-based Ritz Productions, was acquired by the London group. Mr Clerkin, the main shareholder of Ritz Music Group is seeking a quotation on the Nasdaq to fund a major US promotional tour of Daniel O'Donnell in 1999. Another Irishman involved in British-based music companies, Mr Vince Power, should reap handsome rewards if his proposed and postponed flotation of the 15-year-old Mean Fiddler business, to internationalise the Fleadh open air festival, goes ahead. This year, a building society flotation will take place in the new year when the First National sheds its mutual status, subject to members agreeing to the move. Those standing to gain most are the executive directors: Mr John Smyth, group managing director; Mr Michael A Shanahan, deputy group managing director; Mr Paul Reville, director, banking; and Mr Robert Bergin, group secretary. If they do as well as their Irish Permanent counterparts, they will be well pleased.
And who else will make money in 1998? Allegro, the distribution group, has a turnover of almost £200 million, and with its chief executive Mr Dermot Divilly having stated that he wants the company to go public, he stands to get a good return on his 10 per cent share. The C&C management stands to gain if the company is floated on the market; this may happen as one of its shareholders Guinness is putting its stake up for sale. But the highest number of new millionaires is likely from the fast growing technology sector. Stockbrokers have identified a dozen companies in the software, hardware, telecommunications and biotechnology sectors set for market flotations over the next couple of years. Following in the steps of companies such as Iona Technologies will be firms like Trintech, Raidtech and Card Services International, as well as a couple of biotechnology firms.
