Dunloe House has "got a good company at a good price", Mr Barry Gilligan, managing director of Belfast property company Ewart has said. Commenting on the confirmation that Dunloe had gained control of Ewart, he said: "I know they (Dunloe) will continue with the development work and that's good." Mr Noel Smyth, chairman of Dunloe, was unavailable for comment.
Dunloe confirmed that its £25.7 million sterling (£31 million) offer for Ewart has been declared unconditional as to acceptances by the Takeover Panel. This followed the withdrawal of an appeal by Ewart to the panel, in which it had challenged Dunloe's earlier claim to have won control of the company.
Ewart had questioned a claim by Dunloe last week that it had gained full control, casting doubts on the panel's ability to declare an improved 81p sterling a share offer for Ewart unconditional. Ewart had recommended its shareholders to accept the same cash offer of 81p per share from a rival Northern Ireland company, Moyne Shelf Company, but has confirmed that it is now withdrawing that recommendation and is instead recommending that shareholders accept the Dunloe cash offer.
The cash offer is being recommended rather than an alternative loan stock offer of 83p, or share offer of 19 Dunloe shares for every five Ewart shares, because failure to do so will, "in all probability, result in you holding shares in an unlisted subsidiary of Dunloe". Moyne will now accept the Dunloe offer in respect of the 6 per cent stake in Ewart which it built up. This will give Dunloe a 58 per cent stake.
Ewart notes, however, that should the Dunloe offer lapse, Moyne would have an obligation to post its offer document to shareholders. The offer remains open until March 27th.
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