Businessman Pat Austin is set to get a 75 per cent stake in venture capital firm Montaigne Investments after agreeing to buy out fellow director Stephen Keaveney for €1.5 million.
The deal is likely to bring to an end a period of disagreement between directors and shareholders over the direction that the company was taking.
The buyout means that Montaigne's founders, Mr Austin and Mr Keaveney, will part company. However, the company still has a number of high-profile backers.
Under its terms, Mr Austin will buy Mr Keaveney's 37.5 per cent stake. The price has not been disclosed, but The Irish Times understands that it is €1.5 million. This values Montaigne at €4 million.
Mr Austin, the group's chief executive, will be left as the dominant stakeholder with control of 75 per cent of Montaigne's issued share capital.
Solicitor Conor McGowan is representing Mr Austin in the deal and law firm Eugene F Collins is acting for Mr Keaveney.
The differences between the directors date back to before Christmas. One board member sought advice from insolvency practitioners but directors wanted to keep the business going.
Since Christmas, Montaigne has been the subject of a number of rumours, including that it was on the verge of being placed in liquidation. A spokesman described these as "daft".
Its offices in Blackrock, Co Dublin did not re-open after Christmas until January 16th.
Montaigne's spokesman said reports that staff had not received salaries since November were "technically correct" as its employees were paid earlier than usual before Christmas and paid later than usual this month. He said that no workers missed out on a month's pay.
Mr Austin and Mr Keaveney set up Montaigne in the Republic in 2003. It has branches in Spain and Malta. Recently the company raised €500,000 for a new venture, Blackrock Publishing, which has signed a book deal with journalist Emily Hourican.
It also invested €2 million in broadband company Broadworks, which businessman Pat Alley bought late last year. That deal was originally priced at €8 million, but the business sold for a lot less than that sum.
Montaigne's investors include former Anglo Irish Bank chairman Peter Murray and Airtricity director Louis Fitzgerald.
