Businessman Denis O'Brien, who last week spent almost £4.5 million (€5.7 million) buying a 9.2 per cent stake in PGA European Tour Courses, has made an approach to buy out the leasehold of PGA's principal trading asset, the Quinta do Lago golf complex in Portugal. In a statement last night, PGA European Tour Courses said that since it announced in January it was in discussions with parties which might or might not lead to an offer, it had received the approach from Mr O'Brien.

PGA has three main shareholders - the European Tour, ClubCorp and Mark McCormack's International Management Group - holding around 68 per cent of the PGA shares, so Mr O'Brien's 9.2 per cent has limited bargaining power when it comes to deciding the outcome at Quinta do Lago. Mr O'Brien paid £25 million two years ago for the freehold of Quinta do Lago, which includes four 18-hole golf courses currently on 99-year leases to several international companies, including PGA European Tour Courses.