Vantive Holdings, the company controlled by Zoe property developer Mr Liam Carroll, is understood to have been in the market again yesterday buying Dunloe Ewart shares. There were active dealings in the shares which fell by 7 cents to 41 cents before recovering to close at 48 cents and some 3.5 million shares changed hands.
Merrion Stockbrokers has confirmed that it bought 6,829,170 Dunloe Ewart shares at an average of 48 cents per share and 681,405 shares at an average price of 46 cents, on Thursday, on behalf of Vantive. This increased its holding from 10.8 per cent to 12.7 per cent, at a cost of €23.6 million (£18.6 million). No disclosure has yet been made about yesterday's dealing but Vantive's holding could now be in excess of 13 per cent. This makes it the second-largest shareholders after Mr Noel Smyth, who controls 22.5 per cent.
Dunloe Ewart is still trying to establish Mr Carroll's intentions but the purchases have come a few days before the company's meeting on Wednesday to vote on a scheme of arrangement and proposals to privatise the company. It could be a prelude to a takeover bid, or an attempt to do a deal on some of Dunloe Ewart's portfolio, but neither Vantive nor Dunloe Ewart would make any comment.
The Dunloe privatisation offer is 51 cents per share compared with a net asset value of 67 cents. The offer comprises 34 cents in cash and the remaining 17 cents is in unsecured loan stock. A number of shareholders are opposed to the loan stock element because it is unsecured. Dunloe Ewart decided to go down the privatisation route because of the depressed share price and the scheme of arrangement is designed to help the under-financed company to complete developments as it sells some of its portfolio.
Vantive Holdings is controlled 50/50 by Mr Carroll and his wife, Roisin. It has an issued share capital of just £3,000 and had a deficit in shareholders' funds of £4,428 as at March 31st, 1999. It had, however, substantial business as debtors amounted to £27.5 million and creditors were a similar amount. It appears to be the holding company for most of Mr Carroll's enterprises. According to Vantive's accounts it holds investments (20 per cent or more) in a number of companies, including Zoe Developments.
