Quinn Group has upped its offer for Wentworth Group Holdings to £122 million (€178 million). The Fermanagh-based conglomerate is now seeking an irrevocable undertaking from Wentworth's largest shareholder not to accept any other bid unless it values the golf and leisure complex at more than £135 million.
Mr Seán Quinn, the managing director of Quinn Group, wrote to Chelsfield - which owns "B" shares amounting to 60 per cent of the equity in Wentworth - yesterday outlining the new bid.
The other 40 per cent of Wentworth is held by 26 "A" shareholders, including the Savoy Group, controlled by Mr Derek Quinlan's Quinlan Private group.
Quinn Group, which is being advised by Deloitte Corporate Finance, had been expected to drop out of the bidding for Wentworth last week when Chelsfied gave an irrevocable undertaking to accept a £110 million offer from British retail entrepreneur Mr Richard Caring.
The undertaking could not be rescinded unless a counter bid in excess of £120 million materialised.
In the letter, which was also sent to Rothschild, the merchant bank advising Wentworth, Mr Quinn outlined concerns with the conduct of the sale process.
"We believe there has been a lack of clarity and order surrounding the conduct of the sale process to date and to the treatment of our approach and the implementation of the pre-emption procedures available to the 'A' shareholders," the letter says.
The "A" shareholders have the right under certain circumstances to pre-empt bids for Wentworth. Several, including the Savoy Group, have exercised that right at earlier stages in the bidding process but have not proceeded with counter bids.
The letter states that Quinn Group remains an interested party and will increase its bid to £122 million "provided we can be satisfied that the sale and pre-emption process going forward will be structured in a transparent and equitable manner".
Sources close to Quinn Group said last night that given the speed with which Chelsfield had given irrevocable undertakings to Mr Caring, they anticipated a prompt response to their latest approach. They also expect the offer to be circulated quickly to the "A" shareholders, triggering the 14-day pre-emption period.
The source indicated that although Quinn Group expected all shareholders to accept, the offer was unconditional and it would proceed, provided it could obtain majority control.
The bid tabled by Quinn Group yesterday is at a 39 per cent premium to the £87.5 million bid they originally offered for the 75-year-old club which is located on a 11,000-acre estate in Surrey. It currently produces annual profits of £8 million.
If Chelsfield gives the undertaking sought by Quinn Group, then attention will turn to the "A" shareholders, who also include former newspaper proprietor Mr Eddy Shah and hotelier Mr Surinder Arora.
