1,300 may share €300m windfall

More than 1,300 mostly small shareholders could share in the €300 million windfall gain at South Wharf, the former Irish Glass Bottle company, which hopes to buy its warehouse site in the docklands from the Dublin Port Company for a fraction of its market value.

South Wharf has not commented on what will happen if it succeeds in its efforts to force Dublin Port to sell the site under a little-known provision of the 1978 Landlord and Tenant Act. Dublin Port has indicated that it would challenge the legality of South Wharf's move, which could see it acquire the €300 million site for as little as €750,000.

South Wharf shareholders have already seen the value of their stakes jump by around 50 per cent after the news that such a deal was in prospect emerged at the weekend.

The shares closed last night at €3.50 up €1.20 from Monday's opening price.

The bulk of South Wharf, almost 72 per cent, is held by just nine shareholders, the largest of which, Rowan Nominees, holds 29.7 per cent of the company. Rowan holds the shares on behalf of Mercury Asset Management.

The next largest shareholding is held by Yeoman International, which has 23.2 per cent and is controlled by South Wharf chairman Paul Coulson.

A number of other directors also hold significant stakes, including chief executive Edward Kilty (4.2 per cent) and executive director John Riordan (0.5 per cent). Company secretary Brian Butterly owns 0.7 per cent, while Brendan Dowling, a director of Yeoman, holds 0.7 per cent. Mr Riordan and Mr Dowling's shares appear not to be held in their own names, according to the company's share register.

Margaret Downes, a non-executive director, holds 1.07 per cent. Ms Downes is a past president of the Institute of Chartered Accountants.

According to the company's share register, the remaining 28 per cent is held by around 1,340 shareholders of whom only 31 have more than 100,000 shares, or more than 0.25 per cent. Only 13 of these 31 hold the shares in their own names, with the remainder held through nominee accounts that conceal the identity of the beneficial owner.

A significant number have stakes of fewer than 5,000 shares, with many holding fewer than 100.