NTR CHAIRMAN Tom Roche and his family are poised to receive some €118 million from a €275 million liquidity event at the company. Investment firm One51 will receive €70.4 million.
Approval for the distribution to shareholders, including payment of €20.35 million to Standard Life in respect of its 7.4 per cent holding in NTR, will be sought at an extraordinary general meeting on June 26th.
Mr Roche's company Dreamport, which owns 35.5 per cent of NTR, and Philip Lynch's One51, which owns 25.6 per cent, have already backed the scheme.
The liquidity event follows NTR's realisation of a some €1.3 billion from the disposal of its interest in windfarm operator Airtricity to Eon and Scottish Southern and the sale to the Government of its interest in the West-Link toll bridge in Dublin.
NTR, owner of waste company Greenstar, completed a major reorganisation last month when its US ethanol unit merged with Nasdaq-listed Green Plains Renewable Energy.
That followed new investments in solar and wind power, the closure of a German biodiesel unit and the sale of Irish Broadband.
Although the size of the proposed distribution is at the lower end of the €250 million-€400 million scale mooted when NTR raised €170 million in a share placing in September 2006, it comes about 15 months earlier than suggested at that time.
Asked why the company was not returning more cash to shareholders at this time, NTR finance director Michael Walsh said "because we have an ambitious investment plan and big, big investment opportunities".
NTR will retain some €250 million "in the kitty" after the distribution for its continual investment programme in wind and solar power, he said.
It is believed the company has enough money at its disposal to see it through until the middle or latter half of next year.
Mr Walsh said "none at this time" when asked whether NTR had any plans to contemplate flotation when next it requires capital.
For tax reasons, the liquidity event has been structured as an offer for NTR investors to receive €275 million in aggregate by redeeming 17 per cent of their shares at a price of €6.65 per ordinary share. The offer is priced at a 15.65 per cent premium to the company's grey market share price yesterday of €5.75, which itself implies a market capitalisation of €1.34 billion for NTR.
Having committed to participate in the offer to Dreamport's pro-rata entitlement, Mr Roche and his family will realise €97.63 million.
His siblings stand to receive a further €20.35 million through their company Laycross, which owns 7.4 per cent of NTR.
One51, through its vehicle TS Capital, also agreed to take part as per its pro-rata entitlement.
NTR proposed a final dividend of 3.95 cent per share, which follows an interim dividend of 1.82 cent. The final dividend will not be paid in respect of redeemed stock.
NTR said it will increase by 25 per cent the total dividend per share for the year to March 2009 and will keep dividends at that level in the two fiscal years that follow "financial and market conditions permitting".
