Businessman Denis O’Brien has bought support services group Siteserv in a deal worth more than €45.4 million.

In an announcement this morning, the company said its board had agreed to the sale of its business to acquisition vehicle Millington, which is controlled by Mr O’Brien.

The sale price is far less than the group’s €150 million bank debt, as expected.

Siteserv recently engaged with talks with the Irish Bank Resolution Corporation (IBRC) – formerly Anglo Irish Bank - over debts which are due for repayment at the end of the year.

“As part of this review it was recognised that the debt burden being carried by the company was unsustainable and that a sale of the Siteserv business may represent the best available option in the circumstances,” the group said in a statement.

Once IBRC has been paid a sum agreed to cover borrowings, professional fees and expenses and taxation, Siteserv said it expects to have a cash balance of about €4.96 million for distribution to shareholders.

The group said shareholders should expect to receive about 3.92 cent per ordinary share, which is a 96 per cent premium over yesterday’s share price, and a 53.7 per cent premium over the six-month average share price.

Shareholders must now vote on the deal, and it is subject to approval from Irish competition regulators.

The Dublin-based group provides support services to the building, energy and telecoms industries in Ireland and Britain, with clients including BSkyB and UPC.

The group earned operating profits of €8 million last year, with €4.8 million of that coming from its British businesses, offsetting the impact of reduced Government spending in Ireland.

In the six months to October 30th, 2011, revenues were 9 per cent higher at €92.2 million. Operating profit was €4.8 million for the period, a rise of €200,000.