Jurys Doyle chairman Richard Hooper stands to receive nearly €960,000 for his shares in the hotel group, while chief executive Pat McCann will net gains running into millions of euro from the takeover of the company.
Mr McCann holds options over Jurys Doyle shares worth some €7.5 million at the offer price of €18.90. To exercise them would cost him nearly €2.8 million, leaving him sitting on a gain of €4.7 million. In addition, he holds around 135,000 shares in the company, worth some €2.55 million.
Other beneficiaries of the offer include finance director Paul McQuillan, whose 90,000 shares in the company are worth €1.7 million. He holds a further 253,000 options worth nearly €4.8 million, before the cost of exercising them is factored in. Former chief executive Peter Malone retains 27,813 shares in the company, worth around €525,000.
The Doyle-led consortium's offer document was posted to shareholders yesterday, offering them the option of a tax-efficient loan note alternative to straight cash in payment for their shares.
Under the terms of the offer, shareholders will get €18.90 for each share they hold, a premium of 41.5 per cent over the share price before the company became a takeover target.
Alternatively, they can opt for one redeemable preference share for each Jurys Doyle share owned. The preference share alternative allows shareholders who wish to defer their capital gains tax payments a way of doing so.
The purchasing consortium, which includes the three Doyle sisters - Bernie Gallagher, Eileen Monahan and Ann Roche - have indicated they will opt for the preference share alternative.
The redeemable preference shares, to be issued by JDH Acquisitions, will pay an interest rate of 3 per cent per annum. The interest will be rolled up and payable three years after the date of issue and annually from then. The shares will be redeemable at par.
The first closing date for the offer is November 16th.
Meanwhile, JDH said it intended to continue to operate Jurys Doyle as a hotel group. It will also proceed with the sale of the Berkeley Court and Montrose Hotel sites while it plans to conduct a review of the group's asset portfolio following completion of the offer.
It also noted that trading in the third quarter up to the end of September had been "satisfactory".
In relation to the company's listing, the offer document said only that JDH "may apply for cancellation of the listing of Jurys Doyle shares on the official lists".
Whether Jurys Doyle remains a publicly-quoted company may yet be a matter for the Irish Stock Exchange, however. With so much of the company concentrated in the hands of a small group of investors, the Exchange may decide that it is no longer appropriate for Jurys to maintain its quote.
Aside from the 56.7 per cent of shares pledged to JDH, property developer Sean Dunne controls a 28 per cent stake in the hotel group. The offer document also said that the company's non-executive directors, led by chairman Richard Hooper, would resign with effect from today.
