NTR share redemption plan to proceed after Revenue clarification
Investment group to redeem up to 108.7 million ordinary shares
The main beneficiaries of the scheme will be chairman Tom Roche and his family and investment group One51. Photograph : Matt Kavanagh
NTR is to proceed with its plan to distribute €100 million to investors after the Revenue Commissioners confirmed the investment group’s share redemption scheme will be subject to capital gains tax rules.
The group has been involved in ongoing discussions with Revenue to clarify the taxation consequences of the plan, which was announced in August. Some smaller shareholders had expressed concern over how much tax they might be forced to pay if the shares were to be subject to income tax rates.
NTR is to redeem up to 108.7 million ordinary shares at a price of €0.92c per share. The special payout is part of a planned liquidity event by the company, which has scaled back its investments in recent years and exited a number of unprofitable ventures.
The main beneficiaries of the plan will be chairman Tom Roche and his family who are expected to earn about €39.6 million from the special payout. Mr Roche owns 3.26 million shares in NTR personally while the family holds a 38.31 per cent stake through an investment vehicle called Dreamport Ltd. Up to 2011, NTR paid out healthy dividends to the family each year, most recently €5.7 million in 2010 via Dreamport.
Investment group One51 is expected to net €23.5 million from the scheme which was overwhelmingly approved by shareholders at an egm in Dublin on September 10th.