Property developer Sean Dunne has decided to sell his 28 per cent stake in Jurys Doyle to the Doyle family-led consortium that is taking over the company. The move brings to an end nearly three months of speculation about his intentions towards the hotel group.
In a statement released yesterday afternoon, Mr Dunne said he was "happy" with the investment, which would realise a €20 million gain.
While he bought a small portion of his shares at levels as high as €19.50, most of Mr Dunne's shares were purchased below the Doyle offer of €18.90. His overall investment in Jurys is in the region of €300 million, some of which is funded through borrowings. "I view a minority shareholding in a public company over which I have no say in its direction as negative for both parties," Mr Dunne said.
He continued to say his "best interests" would be served by taking a profit and concentrating on his development business.
By selling into the Doyle-led offer, Mr Dunne will free up the cash he would need to pay for the site of the Berkeley Court Hotel, which is being sold by Jurys.
Tenders for this site closed on Monday, with Mr Dunne among at least seven bidders. Property experts have conservatively valued the 2.4 -acre site at about €100 million, a valuation that does not match the €54-million-per-acre price paid by Mr Dunne for the adjoining Jurys site last month.
Jurys is likely to decide on a preferred bidder next week. Other developers said to be in the running for the site include Paddy Kelly, Frank Gormley of Howard Holdings and Ray Grehan of Glenkerrin Homes.
Mr Dunne yesterday wished "every success" to JDH Acquisitions, the takeover consortium comprised of members of the Doyle family, the Beatty family and Mrs Elizabeth Nelson.
JDH sent its offer document to shareholders at the end of last month and has set November 16th as a closing date for acceptances. The group wants to take Jurys private and continue to run it as a hotel company. Mr Dunne's decision to sell his shares guarantees the consortium's ability to take full control of the firm.
Jurys Doyle has been in play since May, when the Precinct consortium that last year took over the Gresham Hotel Group started to look at a buyout.
A number of approaches followed, with Precinct peaking at €17.50 before exiting the race after a funding hiccough. Over time, all the other parties linked with possible bids - the Reuben Brothers, Quinlan Private, Paddy Kelly and developer Liam Carroll - also fell away, leaving Mr Dunne in the spotlight.
Shares in Jurys closed at €18.90 last night, up 10 cent on the day.
