Group mulls €100m stake

FARMER Business Developments is reported to be negotiating to take a €100 million stake in One51 Capital which is attempting to buy Irish Continental Group.

Its most notable investment is the 24% stake in FBD Holdings.

One51 refused to comment on the report which said negotiations were understood to be at an advanced stage.

Farmers Business Developments comprises 4,4000 shareholders of mostly farmers or their relatives.

One51 is currently locked in a battle to take control of ICG, the shipping group which runs Irish Ferries.

One51 Capital is the offshoot set up to progress that bid in conjunction with the Doyle Group of Cork.

Philip Lynch is chief executive of One51 which was formed out of IAWS with the intention of getting involved in green energy projects and waste management.

The Irish Farmers Journal reported that the proposal to buy into One51 Capital was at an advanced stage and if it goes ahead will involve an investment of just over €100m.

Last night a spokesman for One51 said it was not company policy to comment on potential deals the group might be involved in.

“One51 is continuously involved in a wide range of discussions with third parties with a view to developing its interests,” he said.

Market sources suggest that Mr Lynch’s track record with IAWS and his business exploits since he founded One51 makes him an attractive focus for investors with spare cash seeking to grow their wealth further.

The farmers’ investment group is cash rich having netted €85m last June when it sold some of its FBD Holdings stake.

It is also due for another windfall as a result of FBD’s decision to return €177m of surplus capital to investors, which will be handed over in late June.

Further money are also due from FBD and the farmer body is looking for new outlets for its surplus cash.