Talks over Bord Gáis staff shares

Negotiations are under way between the NTMA and Bord Gáis over how members of the company’s employee share ownership trust (ESOT) will be treated when it is part privatised later this year.

Employees of Bord Gáis own 3.27% of the company. The Government plans to sell the retail arm of the business, Bord Gáis Energy, as part of its plan to dispose of state assets. The Government will retain control of the distribution division, Bord Gáis Networks.

Neither Bord Gáis or the NTMA, which is responsible for handling the sale, would comment on what the implications will be for the ESOT shareholding.

It is believed that one of the options would involve splitting the 3.27% shareholding according to the value of the energy business relative to the total value of Bord Gáis. However, talks are focused on how the current shareholders of both companies will be compensated.

A source close to the company said: “Obviously the sale of the energy business will mean a diminution in the value of the shares in the network business. So the question is how are shareholders in the network business compensated. Will they be given a greater shareholding in the network business? Will the shareholders in the energy business be given compensation in cash and for how much, or will they be given shares in the network business?”

Both the NTMA and Bord Gáis are hiring financial advisers to handle the sale of the energy business.

“We have completed the pre qualification process for the appointment of a financial advisor to advise the Board and management of Bord Gáis in relation to the sale of Bord Gáis Energy, and the formal tendering process is now under way,” said a Bord Gáis spokesperson.

“We expect to complete the process and appoint a lead corporate financial advisor in October. We have also initiated the pre qualification stage for the appointment of legal advisers and expect to conclude this process before the end of 2012.”

Bord Gáis is also looking for a CEO following the resignation of John Mullins at the end of July. The executive search firm Merc has been appointed to look for a suitable replacement. Advertising for the vacant position will begin this weekend.