Precinct seeks fresh backers

IF Precinct fails to find new financing for its aborted Jurys Doyle bid the impact on developer Sean Dunne’s €200m investment in the business could be massive.

Shares in the county’s largest hotel chain fell more than 5% yesterday knocking €10 million off the value of Mr Dunne’s investment. Shares fell from €17.85 to €16.90 as Precinct’s €1.1bn bid looked dead.

Mr Dunne is heavily committed to Jurys, having previously agreed a €260 million price for the Jurys Doyle Ballsbridge site.

In the past week he bought up more than 18% of the chain’s equity base, but the value of this plunged as the market digested the Jurys Doyle board’s decision to end the due diligence process with Precinct after Anglo Irish Bank pulled its support. Precinct is now under intense pressure to find alternative finance.

It is understood the Jurys board believes Mr Dunne’s intentions are bigger than protecting his €260m land deal. How those work out remains to be seen, said one source. Mr Dunne is the biggest single shareholder in the 33 strong hotel chain, but will not be able to vote in support of his land deal.

In a statement last night the board said under stock exchange rules Mr Dunne would “be precluded from voting on the resolution of Jurys Doyle shareholders required to approve the transaction” when they meet in extraordinary general meeting on 27 September.

His share purchase was made before due diligence with Precinct broke down. A spokesman said the group was trying to find alternative backers quickly.

He couldn’t say what progress has been made by the consortium, led by developer Bryan Cullen in Dublin and the Reubens brothers in London.

In his statement Mr Dunne indicated he intended talks with significant shareholders in Jurys Doyle next week.

His tone suggested he was interested in a deal with the Doyle and Beatty families, but the markets simply do not know what that is.