Michael Stanley and fellow Cairn founders to sell €24m of the builder’s shares
Chief executive and McIntoshs to place 17m shares in construction company
Michael Stanley, Cairn Homes chief executive, is selling shares.
Cairn Homes chief executive Michael Stanley and his fellow company founders plan to sell more than €24 million worth of shares in the house builder.
Mr Stanley, his brother Kevin, and investor Alan McIntosh and his wife, intend selling 17 million shares, or around 2.2 per cent of the Dublin-listed builder.
The stock would be worth marginally more than €24.2 million at the €1.424 price at which it was trading ahead of the news on Tuesday.
Michael Stanley controls 3.3 per cent of Cairn while the McIntoshes have 6.3 per cent through various entitles.
Assuming they place all 17 million shares, this will fall to 2.7 per cent and 5 per cent respectively.
If they succeed in disposing of the stock, they have pledged not to sell their remaining shares for six months.
The Stanleys and McIntoshs own founder shares in Cairn, some of which convert once a-year to ordinary stock that can be traded on the Dublin market, once the company hits targets agreed with the board.
They are selling the 17 million shares through a secondary placing that Irish firm Goodbody Stockbrokers and multi-national Numis Securities will manage.
The brokers will recruit investors willing to buy the shares through a book building process.
Once this is complete, Goodbody, Numis and the Cairn founders will agree the price at which the shares will be placed.
The Stanleys and McIntoshs founded Cairn and the Irish brothers passed a number of properties to the builder before it floated on the Dublin market.
Cairn builds and sells houses and apartments mainly in the greater Dublin area.