Mr Stewart Kenny chief executive of Power Leisure the company which trades as Paddy Power Bookmakers has netted €4.5 million from a placing of the company’s shares while a number of other large shareholders also made considerable sums.
Power Leisure has placed 6,696,671 existing ordinary shares principally with institutional investors in Ireland and Britain on behalf of a number of existing shareholders at a price of €4.55 per share.
As part of the placing Mr Kenny sold 1 million of his shares and now holds 5.3 per cent of the firm’s equity. Bank of Ireland sold its entire holding of 3.56 million shares as did ICC bank which held sold just over 2 million shares.
Under a lock-in agreement put in place at Power’s flotation in December 2000 there are restrictions on the number of shares the directors can sell without the approval of Goodbody Stockbrokers and ING Barings.
This lock-in period expires on July 24th this year. However Mr Kenny has agreed to an extension to the lock-in deed in relation to his remaining shareholding until March 20th 2003.
Power’s finance director Mr Ross Ivers said the placing was "significantly oversubscribed."
Mr Ivers said that the company’s free float - number of tradable shares - has increased to 57 per cent and the investor base has been expanded which will improve liquidity in the stock.