KPMG to value 3% stake in Bord Gáis held by employee group

KPMG

has been hired to independently value the 3.27 per cent stake in the

Bord Gáis

group owned by its employee share ownership plan (Esop), which could result in a tax-free pay

out to staff of more than €70 million.

The valuation is being sought as part of advanced negotiations between the Government, staff and the company over the winding up of the Esop. The talks are expected to result in the buyback by the company of the Esop’s stake. The 900 or so Esop members could receive staggered tax- free payments of up to €75,000, subject to approval by Revenue Commissioners.

Bord Gáis Éireann (BGE), which is being sold to a consortium led by Centrica for €1.12 billion, has also reached agreement with unions through the Labour Relations Commission over the terms of the transfer of staff to its new owners.

The deal will see each of the 450 BGE staff receive ex-gratia payments of about €4,200 from the company. They will transfer on the same pay and conditions, as per legislation.

Centrica, which is buying the retail business and BGE's power stations, and Brookfield Asset Management, which is buying the wind energy business, have both agreed to set up new pension schemes for transferring BGE staff that mirror the schemes in the old State-owned company.

Oliver McDonagh, an energy industry official with Siptu, said the deal in relation to the transfer of BGE staff would be put to a ballot of union members next week.

Officials at Siptu and Unite, the other union with members transferring to the new owners, will recommend acceptance of the deal to their members. This will effectively give the Government union endorsement of the terms of the sale.Sources close to the Esop talks said it was unlikely that Esop members would be paid upfront for their stake.

The company was unavailable for comment yesterday.