Financier Dermot Desmond has raised about €170 million from the sale of his 21.5 per cent stake in Greencore, market sources said.
Mr Desmond's investment vehicle, IIU Nominees, is believed to have sold some 42 million shares in the food group, at €4.05 each, shortly after midday yesterday. The shares were sold at a 9 per cent premium to Tuesday's closing price of €3.70.
Both IIU and Greencore declined to comment on the sale, which was handled by NCB Stockbrokers. But the stock is believed to have been bought by a single purchaser, rather than being placed with a range of investors, in what market sources believe to be a property-motivated investment.
A further four million Greencore shares changed hands following the sale and the stock ended 10 per cent higher at €4.07.
The buyer has until today to notify the Irish Stock Exchange of the share purchase. But close observers of the company believe the purchaser may have been attracted to Greencore by its property interests rather than its convenience foods business.
The demise of its sugar business following reform of the EU sugar regime has left the company with a significant landbank in Carlow and Mallow, Co Cork.
A recent valuation of the company's property by estate agents Finnegan Menton estimated its former Irish Sugar factory in Carlow was worth €120 million. This could rise to €150 million if the site is rezoned, the valuers believe. The Mallow sugar processing plant is believed to be worth about €30 million.
The firm also has a site in Thurles, Co Tipperary estimated to be worth €5.5 million, while its former Irish Sugar depot in Wellington Bridge, Co Wexford is worth €1.5 million.
Greencore also owns significant property in Littlehampton, near Gatwick airport.
Mr Desmond first bought into Greencore in late 1999 when he acquired a 5.3 per cent shareholding at a cost of about €30 million. In the months that followed, he steadily built up his stake to become the company's largest shareholder, exercising his muscle when IIU voted to block the reappointment of the company's former chairman, Bernie Cahill, five years ago.
The timing of the sale is interesting, coming just ahead of a decision by Minister for Agriculture Mary Coughlan on the carve-up of €145 million in EU beet compensation.
Ms Coughlan, who is due to meet all interested parties including the company and beet growers today, has until next Thursday, July 13th, to make a decision on the payment. Greencore is claiming up to 90 per cent of the compensation, a move being resisted by the Irish Farmers' Association (IFA).
