Property developer Mr Bryan Cullen, who owns Jackson Homes, holds the majority interest in the consortium that has recently made a revised €107 million bid for the Gresham Hotel group. Siobhán Creaton, Finance Correspondent, reports
The Irish Times has learned that Mr Cullen controls about 66 per cent of the consortium and is joined by Dublin solicitor Mr David Coleman of Lavelle Coleman and builder Mr JJ Murphy.
Deloitte Corporate Finance is advising the consortium and is believed to have brought the proposal to Mr Cullen, who is a substantial property developer. He recently purchased a 3.6 acre site near Sachs Hotel in Donnybrook for €25 million and has applied to develop 196 apartments there.
He also owns the Excise bar in Dublin's International Financial Services Centre.
He was previously involved in partnership with his father-in- law, Mr Jack Cosgrave, who founded the successful Cosgrave building firm, which is estimated to be the Republic's third-largest property development company.
Talks between the group and the Gresham board of directors are said to have progressed well in recent days although sources have indicated that there may still be some negotiations on the price being offered.
The consortium must make a formal offer by January 30th, a deadline set by the Takeover Panel, or walk away from the deal. It has offered to pay €1.35 per share for the group, a premium to yesterday's closing price of €1.20.
The consortium is hoping to have agreed the basic terms of its offer by the end of the week and to complete due diligence in the following weeks. It is also hoping that the board would recommend that offer to shareholders, although it has been suggested that it make be recommended at a particular level. They hope to have an offer document within three or four weeks.
No formal discussion has taken place between the consortium and Gresham's biggest shareholder, the Red Sea group, which has a controlling 28 per cent interest.
The consortium would need to gain control of at least 50 per cent of the firm before its offer could be declared unconditional. It has been suggested that it would consider making a hostile bid for the Gresham if it had to.
The board is expected to meet next week to continue these discussions ahead of any formal offer being tabled. If successful, the consortium would de-list the hotel group. It is being viewed as a pure property play, although sources have suggested that it will not immediately begin to asset strip and sell off the hotels in Dublin, Cork, London, Brussels, Amsterdam and Hamburg.
