Austin to buy out Montaigne backers

Businessman Pat Austin looks set to buy out his backers in venture capital firm Montaigne Investment Corporation.

The Irish Times learned yesterday that the company, whose offices have been closed since the middle of last month, is the subject of a management buyout (MBO) bid.

The offices' closure sparked a number of rumours about the firm's future. However, a spokesman said yesterday they will re-open on Monday. "Montaigne is going through an MBO process at the moment and it has reached a particularly sensitive point," the spokesman said.

A number of other sources also confirmed that a buyout of the company was under way.

It is understood that Mr Austin, Montaigne's chief executive and chairman, is involved in the buyout. He is out of the country at the moment. It was not possible to confirm yesterday if the firm's managing director, Stephen Keaveney, is involved in the MBO.

Apart from Mr Austin and Mr Keaveney, Montaigne has a number of high profile shareholders.

They include Louis Fitzgerald, director of alternative energy group, Airtricity, and Peter Murray, former chairman of Anglo Irish Bank.

Another backer with an involvement in Airtricity is John Lavery, who is a partner with law firm Lavery Kirby Gilmartin Solicitors.

Frank Walsh, a partner with Grant Thornton Accountants is another backer, as is former Liberty Asset Management chairman, John Murphy.

Another shareholder is David Adamson, director of real estate at this year's Ryder Cup venue, the Michael Smurfit-owned K Club in Kildare. Some company records give Mr Austin's current address as the K Club, Co Kildare.

Other shareholders include former IWC chairman Michael McCann and Trudi Rothwell, who is a director of the Rothwell Family Trust charity, and of the Irish-American Rothwell family that founded the Bay State Milling empire in the US.

One of the biggest shareholders is Spanish-based Montaigne Inversiones, which has an address in San Sebastian.

Montaigne Investments also has a base in Malta, which Mr Austin established following that country's entry to the EU in 2004 to take advantage of its favourable tax regime for investors.

An Irish-American, Mr Austin was an executive at industrial holdings company DCC and a director of wine importer Woodford Bourne.

He established Montaigne Investments in 2003 to invest in emerging businesses in technology, telecoms, leisure, casinos, real estate and other areas.

Recently, it raised €500,000 for a new venture, Blackrock Publishing. Montaigne also invested €2 million in Broadworks, a company that lays fibre optic telecoms cables into new homes.

Broadworks recently sold in a deal reported to have valued it at €8 million.