A large shareholder in listed Irish company Prime Active Capital has called for the board to step aside in a row over its investment strategy.
The Irish Times has learned that Conor Martin, who owns 26.5 per cent of Prime Active, has written to its executive chairman Dermot Martin, no relation, calling for the existing directors to step down and make way for new board members.
Conor Martin wants Prime Active to pursue investments in the pub and leisure sectors, where he has had extensive experience and owns assets. He wants to reverse his interests into the listed company and then build a pub and leisure group of scale.
It is understood Conor Martin informed Dermot Martin that he would seek to raise €50 million to €100 million for the expansion, to build a company with turnover of €60 million a year under the Lunasa Bar Group brand.
It is understood Prime Active conducted due diligence on three companies connected with Mr Martin – Kabardin Ltd, Ducas Hospitality Management Ltd and Nogales Ltd.
The company offered to acquire the lease on the Lincoln’s Inn pub near Trinity College and and a unit in the Point Village and to manage these itself.
This was rejected by Conor Martin, who has now asked Dermot Martin to step down, along with Tony Gill and Steve Smith. He wants to be co-opted on to the board as chief executive with Michael Shanley of Panda Waste and Leisure Group, and Eileen Bergin, a founder of The Butler’s Pantry, appointed as non-executive directors.
Prime Active sold its US assets last year and currently has no trading businesses. However, it does have about €1 million in cash on its books.
Its shares are suspended from trading in Dublin and London and it has until March 3rd to make an investment or it will be delisted.
Commenting on the dispute Conor Martin said: “I have officially asked the board to resign and to co-opt a selection of new board members. Dermot Martin did make an offer to me to acquire the leasehold of Lincoln’s Inn and to run it themselves. As a shareholder, I would be extremely concerned that no one in-house has the expertise in that industry.
“It makes no sense for me to be running entities separately. Pub and leisure companies need scale. I have built a platform and invested in Prime Active as a vehicle to give shareholders a realistic opportunity for growth and profitability.”
Dermot Martin confirmed that discussions had taken place about acquiring some of Conor Martin’s assets.
“We are in continuous discussions with him on that,” he said. “We will do whatever is necessary in the interests of 100 per cent of our shareholders.”
