Cairn Homes plans to raise €167m in open offer
Directors’ pay of €1.7m revealed in first annual report since flotation
The proceeds from the Cairn offering would be used to finance the completion of the acquisition of some or all of its pipeline sites. Photograph: PA
London-listed Irish property group Cairn Homes plans to raise €167.4 million net of expenses in a share placing and open offer that will be subject to shareholder approval on April 18th.
The company said yesterday that the issue price and the exact number of new shares to be issued would be decided following its bookbuild exercise.
The proceeds will be used to finance the completion of the acquisition of some or all of its pipeline sites, the development of new and existing sites predominately in Dublin, Cork and Galway, and day-to-day operations.
The pipeline sites have a total anticipated cost of between €193 million and €203 million with the potential for more than 2,000 homes.
Cairn raised €440 million from its IPO in June 2015 and an additional €52 million from a placing in December.
Annual reportMichael Stanley
Mr Stanley received a salary of €455,000, a bonus of €212,000, a retirement benefit of €46,000 and a car allowance of €6,000.
His salary for this year will be €425,000, while his bonus could range from 70 per cent of salary up to 105 per cent if certain performance objectives are achieved. .
Alan McIntosh, a co-founder and executive director, received €540,000 in remuneration for the same 14-month period while group finance director Eamonn O’Kennedy was paid €447,000.
Mr O’Kennedy was also awarded 500,000 share options in June 2015 with an exercise price of €1 each. These will vest in 2018 and 2019.
Total remuneration to non-executive directors in 2015 amounted to €200,000 with the five board members appointed in either April or May of last year.
Separately, Mr Stanley and Mr McIntosh have 85 million “founder shares” between them, which are convertible into ordinary stock subject to the achievement of a compound annual rate of return of 12.5 per cent in the company’s share price between 2016 and 2022. They also hold just under 20 million deferred shares between them.
The report states that a long-term incentive plan will be introduced once the remuneration committee considers that the company has “completed its initial development phase”.