Decision on Gresham owners’ €1bn bid for Jurys expected by next week

JURYS Doyle board of directors is expected to respond to a €1 billion bid from Precinct by the end of next week at the latest.

It is due to meet before then, but no date has been fixed, it is understood.

As well as the unsolicited bid for the chain of 33 hotels, the board will consider the future of its prime seven-acre Ballsbridge site.

It is understood the board is close to finalising its review of the highly valuable site, home to three of its best-known hotels.

Precinct regards the site as a major property play and the board of Jurys Doyle is under pressure to deliver a clear development strategy for the site, if it is to ward off Precinct’s attentions.

That pressure increased significantly after the initial €960 million bid from Precinct, which identified the site as a major target.

Estimates vary for the site, but experts believe it to be worth at least €200m.

If the board decided to put it up for sale that could easily push the value out to €400m, it has been speculated.

It is expected that either a partial or total sale of the seven acres are the core options under consideration by the board of the hotel chain at this critical stage in the group’s development.

Last night a spokeswoman for the hotel chain said the next board meeting was due between now and the end of next week.

Beyond that she would not comment.

Since the initial offer from Precinct the shares in the group have traded well above the pre-bid price of around €12.00.

In Dublin yesterday Jurys Doyle stocks fell 5 cents to €15.20, but the price has held consistently above the pre bid levels.

This indicates investors believe the future outlook for the group has been significantly enhanced irrespective of the outcome of the bid.

Precinct, which took over the Gresham Hotel Group last year for €117m, is headed by Bryan Cullen.

His partners are solicitor David Coleman and Wexford hotelier and builder JJ Murphy.

Mr Cullen is managing director of Jackson Homes and holds 66% of the equity in Precinct.

Mr Coleman, of Dublin-based solicitors Lavelle Coleman, and Mr Murphy, each hold 16.5% of the company, which was backed by Anglo Irish Bank at the time.

Precinct’s opening bid for the hotel chain was €15.25 per share and it upped its offer last week by €1 euro, valuing the chain of hotels at over €1bn.