Shareholders at Unidare will receive a €47.6 million windfall of €2.40 per share if the engineering group completes the €55 million sale of its Dutch manufacturing business to venture capital group 3i, it has emerged.
The sale of Daalderop, currently the subject of a conditional agreement with 3i, was disclosed as Unidare reported a 12 per cent increase in sales to €110.8 million for the six months to the end of March and a 102 per cent rise in pretax profits to €6.5 million.
With adjusted earnings per share up 107 per cent to 23.8 cent, Unidare shares gained 61 cent on the Dublin exchange yesterday to close 18.54 per cent higher at €3.90.
Executive chairman Jack Hayes said the group expected to complete the transaction by the end of this month and said the proposed deal would have a "significant impact" on its full-year results.
The group proposes to set up a bonus scheme for Mr Hayes and finance director Kevin Gallen, pending completion of the deal. While the potential awards vary from zero to €465,000 for Mr Hayes and zero to €235,000 for Mr Gallen, such payments will depend on the approval of shareholders at an extraordinary general meeting.
As part of the capital distribution, up to €1.5 million will be distributed to share option holders in respect of existing share options, if and when those options are exercised.
There will be no interim dividend as the capital distribution will be effected by way of the issue and immediate redemption of fully paid-up redeemable bonus shares.
"While Daalderop has been making good progress in developing sales of its gas Combi boiler, it remains a minority player in the international marketplace," Unidare said. "Further strong growth of the business requires it to have an enhanced international presence which, in turn, requires significant investment both in terms of capital and sales/service infrastructure."
Unidare said the net proceeds from the sale would be €49.8 million after costs of about €1.4 million and adjusted net debt at the end of March of about €3.8 million. Some €1.4 million of the proceeds will be deferred, contingent on the satisfactory resolution of some tax matters.
