Roche buys €21 million in shares to boost stake in NTR to 43.2%

IN a dramatic development NTR chairman Tom Roche has purchased the remainder of shares held in the group by John Gallagher for a price believed to be over €21 million.

The deal gives Mr Roche and his family 43.2% of NTR.

The purchase is seen as a blocking response to the build up of a 20% stake in the company by IAWS Cooperative led by Philip Lynch who is said to have ambitions to float the co-op.

In the past few months IAWS Co-op, which has an 11% stake in IAWS Group, has taken a 20.8% stake in the national toll road operator.

The sale makes it harder for Mr Lynch to gain strategic advantage within NTR, if that was his plan, given yesterday’s sale by Mr Gallagher.

Since the market in the shares in NTR was opened up back in October IAWS Co-op has been actively buying the stock. It has bought shares at prices up to €21.50 and its stake is now worth well over €100m.

NTR confirmed John Gallagher has sold 988,356 ordinary shares in NTR, representing 4.1% of share capital of NTR. Mr Gallagher has resigned as a director of the group.

Mr Roche notified NTR that, through his personal and family holdings, he now has an interest of 43.2% of the issued share capital of the company, having recently acquired 1,505,448 ordinary shares.

The shares were quoted yesterday at €24.50. The share price rise has risen meteorically since October and has risen in value from €13 per share to €24.50. NTR is now valued at almost €600m compared to €302m before IAWS started buying up the stock.

Back in March Mr Lynch said IAWS Co-op was interested in expanding through either merger or acquisition.

Talks there have gone on the back-burner, while the recent moves on NTR have intrigued the market.

Standard Life still holds 7.5% of the shares. About 29% of the equity is loosely held by individuals and it remains to be seen of IAWS goes after those stock holders in an attempt to strengthen the co-op’s grip on the group.