Financier Mr Paul Connolly has purchased 11 Dublin pubs owned by Thomas Read Holdings (TRH) in a deal which values the company at €30 million, writes Emmet Oliver
The main shareholder in TRH is Mr Hugh O'Regan. He will retain a small shareholding but Mr Connolly now has the controlling interest.
Mr Connolly, a close associate of Mr Denis O'Brien, was a major beneficiary of the sale of the Esat Group to British Telecom. He runs Connolly Corporate Finance, which specialises in private placings, bond offerings and initial public offerings.
Mr O'Regan said he was selling because he wanted to concentrate on his other interests, including the Morrison Hotel and the St Stephen's Green Club.
It is understood Mr Connolly has an option to buy out Mr O'Regan entirely within one year. The other shareholder listed by the Companies Office in TRH is Mr Martin Conroy, the managing director, who has less than 10 per cent.
The price paid by Mr Connolly was not disclosed, however it is understood the purchase is a leveraged buyout. Davy Stockbrokers handled the sale.
According to the last published accounts for TRH (for the year to May 31st 2002), the group had net current liabilities of more than €9 million. It had total sales for this period of €38.9 million and a gross profit of €26.7 million. However, costs reduced this to an operating profit of €2.5 million and goodwill, and interest payments left a pre-tax profit of €348,799.
It is understood the majority of the properties involved are held on 35-year leases. The pubs included are: Ron Blacks, the Bailey, Searsons, the Harbourmaster, Thomas Reads, Pravda, the 40 Foot, Budabar, the Dawson Lounge and Life Cafe, and the pubs based in various locations at Dublin airport which are grouped under one licence.
Mr Conroy will continue in his role and Mr O'Regan is being retained as a consultant. The pubs have been for sale for more than a year. Mr O'Regan announced his intention to sell in January 2003 and hired Davy Corporate Finance. TRH was reported to have received approaches from about 60 parties, almost half of them British.
