TCH managing director sells shareholding in subsidiaries

The managing director of Thomas Crosbie Holdings (TCH), owner of the Irish Examiner, has sold his entire shareholding in the company's various subsidiaries.

Anthony Dinan has sold shares in the Sunday Business Post, the Kingdom, the Down Democrat, the Nationalist and Leinster Times, the Western People and the Irish Post.

It is understood that Mr Dinan has cashed in his holdings at this time for personal reasons. The shareholdings have been sold back to TCH, which is controlled by the Crosbie family. It is not known how much the various stakes are worth.

Mr Dinan acquired the shares as part of a deal with TCH. Each time a local or provincial paper was added to the TCH stable, Mr Dinan acquired a stake, usually between 15 and 20 per cent. He did not own any shares in the Irish Examiner.

The most valuable of the stakes is a 20 per cent holding in the Sunday Business Post. This was originally valued at about €2 million, but sources believe it would be worth at least twice that now. The valuations of Irish newspapers have increased sharply, particularly following the sale of the Leinster Leader group to Johnston Press for €138 million.

Mr Dinan is the most senior executive at TCH, apart from members of the Crosbie family. Last week TCH announced strong results, but denied suggestions shareholders might sell the company.

In the year to last December 26th, operating profits before interest and tax were €10.1 million, compared to € 6.7 million in the same period for 2003. Turnover was up to €84 million, from €76 million in 2003, an increase of over 10 per cent.

The company benefited in 2004 from the sale of its Academy Street premises in Cork, which provided a boost of €36.6 million.

TCH has rejected the idea of selling the company - at least for now - and is concentrating instead on further acquisitions.

Borrowings in the period were reduced to €2 million, from €15 million, with shareholders' dividends rising to €5.1 million from €3 million.

Remuneration for the group's six directors rose 40 per cent to €892,000 from €632,000.