Windfall for investment firm shareholder as it plans closure

Executive chairman Shane Reihill stands to make nearly €28m in cash and share entitlements from investment firm TVC Holdings’ decision to effectively wind down its business and return 90% of its net asset value to shareholders.

The company was formed nearly 20 years ago as Trinity Venture Capital. It yesterday announced its intention to return €91m of its €101m assets in cash and UTV Media (TVC’s headline investment) shares to stockholders, and to cancel its Dublin and London share listings. The deal is subject to shareholder approval at an EGM next month.

While TVC has generated serious profit from selling its near 29% stake in the Dalata Hotel group and almost halving its UTV holding, its overall aim of amassing a select number of investments in quoted businesses has come to nothing.

Mr Reihill, who controls 30% of TVC, said management wasn’t prepared to sit on its sizeable cash pile indefinitely, waiting for investment opportunities. He said there remains a lack of transaction options in the marketplace. “We cannot find what we believe to be value-enhancing transactions,” he said.

Mr Reihill said the return of the funds was decided upon after a detailed review of the company’s options. “We believe that this strategy is in the best interests of all our shareholders,” he added.

It coincides with the publication of TVC’s 2013/14 results covering the 12 months to the end of March. They heralded its strongest year, with a 400% surge in pre-tax profits, from €6.6m to €33.4m. That increase was driven by disposal gains and increases in the value of the company’s remaining investments.

TVC will now be wound down over a number of years, allowing for the “orderly realisation” of its remaining assets.