Cairn Homes to bring €60m of founder shares to market
Housebuilding company converting shares to ordinary stock under incentive scheme
Cairn Homes is seeking to have €60 million worth of founder shares admitted to trading in Dublin and London. Photograph: Nick Bradshaw
Cairn Homes is seeking to have more than €60 million worth of founder shares held by chief executive Michael Stanley, his brother Kevin and investor Alan McIntosh admitted to trade on Friday.
The company is converting the 38.68 million founder shares – worth €62.6 million at Thursday’s closing price – to ordinary stock under an incentive scheme that requires it to meet targets that include increasing its value by 12.5 per cent.
Main securities markets
In a statement, Cairn said that it has applied to have the shares admitted to the official list of the Irish Stock Exchange and to trade on both its and London’s main securities markets. It expected them to be admitted on Friday morning.
Michael Stanley will receive 13.54 million Cairn Homes shares while Kevin Stanley will receive 5.8 million. Emerald Everleigh Limited Partnership, owned by Mr McIntosh and his wife, will receive 19.34 million shares.
Analysts estimate that the move will dilute the value of Cairn’s existing ordinary shares by 5.4 per cent.