Dunloe Ewart plans to buy back 67 million shares at 55 cents a share following the sale of several properties.

The share price rose by three cents to 49 cents following the announcement.

The move follows the shelving of plans to go private and expressions of interest which could lead to a takeover bid.

Mr Philip Byrne, the group's managing director, said the move did not aim to frustrate the attempts of the interested parties. But by putting a 55 cent price on the shares, Dunloe is saying that is a minimum which could be considered.

The firm confirmed it had received an approach from Orb Estates announcing its intent to offer 52 cents per share subject to financing and further due diligence. While discussions continue with Orb, it was not prepared to recommend the offer. Also, the Zoe Developments builder, Mr Liam Carroll, has built up a shareholding of some 106 million shares, representing 27 per cent of the company, not far off the 30 per cent mark which would trigger a mandatory bid. If the tender offer goes ahead, Mr Carroll's stake would exceed 30 per cent but, as the reduction in the number of shares is outside his control, this would not oblige him to make a bid.

Dunloe stresses its board "has not received any indication from the Carroll shareholders of their intentions regarding the company".

The share purchase and asset sales will have to be approved by shareholders.

The tender price of 55 cents per share represents a 34 per cent premium to the share price of 41 cents on September 26th, the date immediately before the acquisition of shares by Mr Carroll, a premium of 8 per cent to the price of 51 cents in the proposed scheme to take the company private and a discount of 18 per cent to the estimated new asset value per share of 67 cents as set out in the scheme of arrangement circular.

A repurchase of the 67 million shares would increase the net asset backing per share by two cents to 69 cents.

Chairman Mr Noel Smyth and the other directors have agreed not to tender for any shares.

If all the 67 million shares, representing 17 per cent of the company, are bought, the aggregate stake of the board would remain less than 30 per cent.

The properties targeted for sale include part of its investment portfolio and some of the development sites.