One51 investors enjoy the rollercoaster ride
Since its inception in late 2005 Mr Lynch has bought minority stakes in NTR, ICG and a number of other companies whose combined worth is estimated at over €500 million, with 80% of that tied into publicly quoted entities like NTR and the car ferries group.
Shares in the group traded at €5.80 yesterday, having been at €6 or higher after the initial float.
Davy Stockbrokers valued the shares prior to flotation at €6.31, giving the group a total market value of €880m.
In its blurb the group says it is pursuing a growth strategy focused on developing a substantial presence in the high growth sectors of recycling & treatment, plastics and related markets.
TS Capital, a subsidiary of One51 is the investment vehicle pursuing long-term creation of shareholder value, which houses the minority holdings of the group from NTR to Greenore Port, plus its property development wing which over time looks to have a lot of development potential.
The group has interests in land banks from Greenore to Cork and, if it eventually gets control of ICG, 33 acres of prime development land in Dublin’s docks.
The group emerged out of The Irish Agricultural Wholesale Society which spawned IAWS Plc, the highly successful convenience food group owners of Cuisine de France and other highly valued food brands.
One51 is the final part of the story of IAWS co-op, founded by Horace Plunkett in 1897 to provide basic support for our struggling farm-based economy.
IAWS Plc floated in 1988 while One51 was set up in December 2005.
Since then the group has been up and down a good few paths, some successful and others not so.
Mr Lynch was the first chief executive of IAWS Plc and the man responsible for reviving the fortunes of the original IAWS Co-op.
To date, One51 has been a bit of a roller coaster. Mr Lynch’s swoop on NTR that resulted in the current 26% equity stake was a sign of things to come.
Some suspect this was a takeover move thwarted by Tom Roche, but Mr Lynch always insisted it was simply a strategic investment.
With NTR likely to be stuck on the grey market for some time, he may find it difficult to realise the worth of that minority sake in the short term.
But then One51 is currently well funded and the issue does not arise.
The One51 swoop on ICG was a takeover but that process has been mothballed for at least a year with One51 and Aella both precluded from making a further bid for 12 months.
In both instances it will not be easy for the group to realise much of the value from either of those investments.
However, there is little doubt that, in buying into both groups, Mr Lynch has enhanced the worth of each company as well as the share value of his own backers, which included such luminaries as property tycoon Bernard McNamara.
Mr Lynch has also been building up a critical presence in recycling and in the treatment of plastic waste, which has resulted in a number of strategic acquisitions.
While the evolution of the group has been a bit scatter gun, it is well funded with total bank loans in place of €440m since the end of July while investors hold €142m of ordinary shares in the group.
Clearly, investors like the story, even if the waters have been muddied by the moves on NTR and ICG.
However, it is those swoops that have made the story so intriguing to date and without doubt there will be more intrigue.
