Grafton chairman sells €15m shares

THE chairman of the builders merchants Grafton Group is nearly €15 million richer after selling part of his holding in the company.

Grafton announced last night that Michael Chadwick, and two other directors, had sold part of their stake as part of a placing of shares with institutional investors in Britain and the US.

A statement said Mr Chadwick, whose family formed the company, sold 2.77 million shares at €5.30 per share.

This leaves Mr Chadwick and his family with 22m shares valued at close to €120m. The company's finance director, Colm O'Nualláin sold 200,000 shares yesterday, netting him €1.06m. Another director, Anthony Collins, sold 30,000, at a profit of €159,000.

For the past three years Mr Chadwick who maintains one of the lowest media profiles in Irish business has waived his salary, taking home just €177,000 in pay this year, despite being entitled to a package worth €514,000. In 2001 he took home just €45,000 of a package worth €470,000.

There has also been speculation that Grafton would make a bid for its Irish rival Heitons, having acquired 24% of the company some years ago. Mr Chadwick has been spotted at Heitons annual meetings in the past, but maintains the stake is purely an investment.

Analysts regard the Heiton deal as a blocking move, intended to prevent a predatory outside bid that could undermine Grafton's strong Irish market position.

In recent years Grafton has built an extensive base in Britain as well as Ireland, and the group now has combined sales of close to €1.5bn compared with €988m in 2001.

Last year the group made pre-tax profits €80m and strong profit growth in the years ahead is anticipated.