Jefferson Smurfit group will sell a 2.44-acre site on its grounds at the Kildare Hotel and Country Club (K-Club) to its chairman, Dr Michael Smurfit, for £425,000 (€540,025) following a resolution adopted at an e.g.m. yesterday.

The property, not put on the open market, was valued by estate agents Hamilton Osborne King.

Also yesterday, Dr Smurfit signalled the group's intention to expand its "very modest investment" in Asia through a combination of acquisitions and greenfield developments.

While three shareholders questioned the merit of not putting the K-Club site on the open market, a director who chaired the e.g.m., Mr Martin Rafferty, said this would have been "inappropriate".

Shareholders at the meeting, which was convened directly after the group's a.g.m., said there was a danger the property might have been undervalued.

"I would like to know why this was not processed on the open market," said one, who did not identify himself.

"Valuers, even of the highest order, can sometimes underestimate value."

Mr Rafferty said it was the company's view that the sale price reflected the "current value" of the property. Dr Smurfit did not vote on the resolution.