Cantrell & Cochrane appoints advisers for stock market listings

FLOTATION: Cantrell & Cochrane (C&C) has appointed a team of advisers as part of a planned flotation on the Dublin and London stock exchanges, which could value chairman Mr Tony O'Brien's stake in the company at more than €10 million.

A small number of other executives at C&C who took part in a management buyout in 1998 could see their stakes valued at between €5 million and €6 million each, and perhaps much more, while a larger number of lower level managers could hold shares worth approximately €780,000.

The drinks and snacks company also has an agreement with its unions that, in the event of an initial public offering (IPO), employees will get shares worth €635 for each year of service.

In a statement yesterday, Mr O'Brien said: "While market conditions are difficult to predict, we have nevertheless put in place a team of advisers to assist us with our plans to become a public company in due course."

Timing and whether the company will go ahead with the IPO are understood to be matters that will be dictated by market conditions.

Last year The Irish Times reported that C&C was preparing for a stock market listing in May or June of 2002. At that time, a market capitalisation of €1.3 billion was envisaged.

The company has appointed Goldman Sachs International and Schroder Salomon Smith Barney as "joint global co-ordinators", while Davy Stockbrokers and IBI Corporate Finance have been appointed the Irish joint lead managers. McCann Fitzgerald Solicitors and Dickson Minto have been appointed legal counsel to C&C and the selling shareholders. KPMG has been appointed reporting accountants and Drury Communications as public relations consultants.

A spokesman for C&C said the company would be making no further comment on the matter. He would not discuss the arrangement Mr Maurice Pratt, who took over from Mr O'Brien as managing director in January, has in relation to a shareholding in the company.

According to the latest annual return of Cantrell & Cochrane Holdings Ltd, which owns Cantrell & Cochrane Group Ltd, Mr O'Brien owns 0.8 per cent of the issued share capital. A market capitalisation of €1.3 billion would indicate a value of Mr O'Brien's shareholding of €10.4 million.

Other major shareholders are Mr Brendan Dwan, whose shareholding could be worth €6.5 million, and Mr Brendan Plunkett, whose shareholding could be worth €7 million.

Shareholdings that could be worth €5.2 million are held by Mr Colin Gordon, Mr Desmond Drumm, Mr James Bradley and Mr Peter McGovern. A shareholding held by Mr James Muldowney could be worth €1.82 million.

These executives may have a greater stake in the company than is indicated in the return as management is believed to own up to 8 per cent of C&C. The return only indicates a shareholding of 5.6 per cent being owned by management.

A number of people own 0.06 per cent shareholdings, which could be worth €780,000 each. They are Mr Barry Fuller, Mr Bruno Barbero, Mr Claudio Viglino, Mr Daniel Ahern, Mr Denis O'Brien, Mr Emilio Barbero, Mr Giorgio Bostico, Mr James Sheerin, Mr John Chamney, Mr John Keogh, Mr John Costigan, Mr John Kelly, Mr Michael McArdle, Mr Michael Howley, Mr Michael Hatton, Mr Norman Trotter, Mr Paddy Doody, Mr Pat Rowan, Mr Patrick Cahalane, Mr Patrick Miley, Mr Peter Chambers, Mr Philip Robinson, Mr Renzo Pagliarino, Mr Rodney Mitchell, Mr Seamus Leydon, Mr Sean Buckley, Mr Vito Chlarion-Cassoni and Mr William Acheson. The company has operations in Italy.

Mr Brian Higgins and Mr Gary Mathews also have shareholdings of 0.06 per cent.

Mr Brendan McGuinness has a 0.047 per cent shareholding, which could be worth €600,000 in the event of a €1.3 billion capitalisation.

According to the annual return, Cantrell & Cochrane Holding Ltd has an indebtedness of €526 million.

The highly-leveraged €734 million management buyout of C&C in 1999 from Allied Domecq was backed by the private equity group BC Capital, which owns in excess of 90 per cent of C&C. The management buyout happened after Allied Domecq withdrew from a planned floatation of the Irish drinks company.