Company buy-outs and flotations are set to boost the ranks the Irish superrich over the next 18 months. Acquisitions and stock exchange listings have already made millionaires of the key players in several Irish companies and others are likely to follow suit. The beneficiaries will include executives from relatively newly formed companies in the burgeoning information technology sector, as well as the major players from larger, wellestablished businesses.
Acquisitions in particular are expected to play a key role in adding more names to Ireland's financial elite. Among those to watch are:
Hugh MacKeown, chairman of Musgrave - the cash and carry group which owns the franchise to the SuperValu and Centra outlets - has always shrugged off suggestions that the company will go public. Six years ago he affirmed that Musgrave wanted to remain a private company for as long as it could, even though at that time it would have been the 18th most profitable company on the Stock Exchange. However, there is speculation that the company may join the stock exchange over the next two years. Mr MacKeown's 9 per cent stake would be worth between £20 and £30 million if the company was floated.
The First National Building Society will convert to a public company next year, assuming members vote in favour of demutualisation. The move will mean significant financial benefits for FNBS's executive directors. They are: John Smyth, group managing director; Michael A. Shanahan, deputy group managing director; Paul Reville, director, banking; and Robert Bergin, group secretary.
The windfall in shares and share options that Irish Permanent directors received when the IP floated is an indication of what lies in store for the First National men.
The speculated disposal of Guinness's 49.6 per cent stake in the drinks group Cantrell and Cochrane could result in the flotation of C&C, whose chief executive is Tony O'Brien. C&C is seeking clarification from the European Commission on rules relating to competition following the agreed merger of Guinness and GrandMet. Mr O'Brien would have no shares if the company floated, but would undoubtedly be awarded share options that would be hugely lucrative if C&C continued its impressive growth.
The distribution group Allegro suffered a serious blow last year after Unilever's successful bid for Allied Domecq's stake in Lyons Irish Holdings. However, its chief executive Dermot Divilly has made no secret of the fact that he wants Allegro to go public and is still searching for a large acquisition which would ensure this in the next couple of years. He owns more than 10 per cent of the firm, the turnover of which is now approaching around £200 million.
Easons - the country's largest bookseller - could well be the target of a takeover bid in the near future given the British retail invasion, with ensuing financial benefits for the men at the helm. Among those to benefit would be: Harold Clarke, who recently retired from running the group; current managing director, Michael Ryder and his family; and group chairman, Ken Brabazon and his family. Easons achieved a 10 per cent rise in sales to £130.3 million for last year and a 5 per cent growth in pre-tax profits of £6.58 million.
Senior executives at the Dublinbased firm Rapid Technology, Pat McDonagh Mr Jim Barry Mr Roger Bannon, are among the potential millionaires to emerge from Ireland's booming information technology sector. The company has just announced plans to raise £5 million with the flotation of around 20 per cent of its shares on Dublin's Developing Companies Market and London's Alternative Investment Market.
Aonghus Geraghty, chief executive of CSI (Card Services International) set up the company in 1993. A recent report by Goodbody stockbrokers identified it as one of a number of information technology (IT) companies likely to seek a public flotation during the next two years on either the Irish Stock Exchange or US Nasdaq.
Noel C May is president and executive officer of Raidtec Corporation, one of the great success stories of the IT sector which is expected to go public in the near future. Established in 1992, it produces systems used for high reliability computer data storage and its potential market is expected to see massive growth by 2000.
Cyril McGuire Mr John McGuire co-founded Bray-based Trintech which develops, markets and produces end-to-end payment transaction software for the electronic commerce industry. Trintech is also among the IT companies likely to seek public listings.
Gerry McNamara is chief executive of Clashfern Holdings, the oils and chemicals group, which is hoping that an acquisition in Britain over the next three months will give it the size to proceed with a stock market flotation.
A stock market listing for the Dublin-based transport group Imari would mean a major financial windfall for its chief executive Mr Ted O'Neill. The company abandoned a proposed merger with the publicly-quoted Seafield group in 1995 which would have given Imari stock market listing, but it is possible that Imari will go public if it can be linked in with an acquisition.
Marathon Sports is a strong candidate for a takeover bid and this would reap huge financial rewards for Michael Curran. Lifestyle was bought for £15 million and Marathon Sports is almost certain to attract offers.
