EWART, the Belfast property company, has acquired the outstanding 10 per cent shareholding in the Laganbank development company, following arbitration on the price, according to informed sources.
The net consideration is understood to have been around £200,000 sterling. The consideration goes up to £300,000 if grossed up for tax.
Ewart has not made any profit projections for the £40 million Laganbank development. The purchase places a value on it for the first time. Ewart had its 90 per cent crest in Laganbank, which is at an early stage of development, valued in its balance sheet at around £1 million. The purchase of the minority stake - which was owned by an unidentified Belfast property investor - puts the value of the 100 per cent at some £3 million.
Ewart, as the 90 per cent shareholder, was obliged to buy out the remaining 10 per cent. However, the company and the seller were not to agree a price. An arbitrator was then called in to establish a value. He is understood to have taken the minority status into count when he arrived at the valuation.
Ewart is participating in the development through a 25 per cent stake in the proposed new Hilton hotel. That, and other developments, could generate between £2.5 million and £3 million over the next two years.
Ewart's latest results showed a rise in pre tax profit from £500,000 to £700,000 in the six months ended October 31st, 1995. This growth was attributed to the inclusion of investment income amounting to £280,000 which arose from, the maturity of life policies and the operating profit fell.
This drop was attributed to reduced income from the company's West Kent subsidiary which is feeling the breezes of competition. The trading position, however, has improved since October and managing director, Mr Barry Gill has said he is confident about the out turn for the full year.
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