Unidare directors set for bonus boost

TWO directors of engineering equipment group Unidare will pocket close to €1 million for working on the sale of the company’s main asset.

Unidare plans to sell off its US business, ORS Nasco, for €68m and is considering selling its other assets before winding the company up.

For working on the sale of ORS Nasco, Unidare says it will pay a bonus of €640,000 to executive chairman Jack Hayes and €320,000 to finance director Kevin Gallen.

The payments will have to be approved by the company’s shareholders at an extraordinary general meeting.

Unidare said when the sale of ORS is complete, it will return the proceeds (excluding debt) to shareholders. This is equivalent to €2.60 per share and follows on from the €2.40 special dividend shareholders received earlier this year from the sale of its Dutch unit.

Unidare is now considering the sale of its remaining operating division, Eland, which is based in Britain.

“The board is currently exploring possible disposal options in respect of Eland. Should the disposal of ORS Nasco and Eland take place, it is the board’s intention to seek shareholders’ approval for the winding up of the company and the distribution of any remaining assets to shareholders,” Mr Hayes said.

The biggest beneficiary of the cash return to shareholders from the sale of ORS will be financier Dermot Desmond. He controls around 27% of Unidare and would pocket €14m.

Unidare unveiled a rise in annual profits yesterday. Pre-tax profits in the year to end September were €2.5m higher at €11.5m on sales of €223m.

No final dividend was declared because of a pay-out earlier this year.