Jurys Doyle has received a takeover approach that could see the country's biggest hotel group change hands, writes Jane O'Sullivan, Markets Correspondent
It was not clear last night who was behind the unsolicited and preliminary approach to buy the company, whose well-known hotels include the Burlington, the Westbury and the Berkeley Court as well as Jurys Ballsbridge.
The company confirmed the approach yesterday.
Speculation has centred on property developers and investors interested in gaining control of the company's site in Ballsbridge, the future of which is currently under company review.
In the heart of Dublin 4, and described by one property analyst as "the best site in Ireland", the eight-acre site is estimated to be worth some €200 million. Among those believed to be interested in doing a deal with Jurys are property developer Bernard McNamara, who has acquired both the Shelbourne hotel and Superquinn in recent months.
It is understood that Derek Quinlan, who bought a string of London hotels, including the Savoy and Claridges on behalf of a group of Irish investors last year, is not behind the approach.
Nor is Paddy Kelly, the property developer behind the Clarion chain. He told The Irish Times last night that, while he was interested in the Ballsbridge site, he was not involved in the current approach.
Shares in the hotel group have risen strongly in recent days amid speculation about a takeover. They jumped by nearly 5 per cent to €14 yesterday, valuing the company at around €880 million. But market sources said a bidder might have to pay up to €1 billion to secure control of the hotel group, which also runs a number of successful three-star inns in Britain and Ireland.
Any buyer would also need to win the support of a number of key shareholders. More than a fifth of the company is owned by Eileen Monahan, Bernie Gallagher and Ann Roche, the three daughters of the late hotelier PV Doyle.
The former chairman of Jurys, Walter Beatty, holds a further 7 per cent while Bank of Ireland Asset Management is the largest institutional shareholder with a 9 per cent stake.
Any sale would represent a second windfall for Mrs Gallagher, Mrs Monahan and Mrs Roche, who along with their mother Margaret, shared nearly €240 million in cash and Jurys shares when the hotel group acquired the Doyle group six years ago.