Údarás na Gaeltachta denies role in €1m deal linked to fish farmer

Údarás na Gaeltachta has said it was not involved in a €1 million deal involving a stake in fish farmer Bradán Beo, in which the State body is a shareholder, that subsequently led to a High Court case.

Late last year, the purchase and cancellation of a stake in Galway-based Bradán Beo held by a company called Maoiniú Mara, left Údarás and a third company, Bradán Muhr,with 50 per cent each in the fish farm operator.

Before the deal, each had held 30 per cent of the business. According to Údarás na Gaeltachta, there was no transaction that involved the State body buying or selling shares in Bradán Beo.

According to Údarás na Gaeltachta, another company, which held redeemable ordinary shares in Bradán Beo, decided to exercise its right to redeem those shares and offered them to Bradán Beo for €1.05 million.

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Bradán Beo Teoranta accepted the offer, paid €1.05 million for the shares and redeemed and cancelled them. Filings by the company show that on November 28th last year, it agreed to buy Maoiniú Mara’s shares and to cancel them.

Share classes

Companies Office records show that shareholders in Maoiniú Mara included Údarás na Gaeltachta, which held 1.6 million shares across different classes, including redeemable shares, and a company called Meitheal Éisc, which held 500,000 shares, some ordinary and some redeemable. Meitheal Éisc is 99.99 per cent owned by Bradán Mhur, according to company filings.

The third shareholder in Maoiniú Mara is the Irish Seafoods Producers’ Group, which held 600,000 shares, again across different classes. This is the shareholder leading the legal action over the transaction.

The number of shares held by Údarás na Gaeltachta in Bradán Beo did not change. The authority pointed out that, as a result of the transaction, it and the other remaining shareholder, Bradán Muhr, ended up with 50 per cent each of the reduced company.

The transaction led to court action involving Bradán Beo and Maoiniú Mara, a number of whose shareholders argued the transaction undervalued the redeemable shares in the fish farm company.

The issue was raised in the High Court earlier this month and is due for a full hearing in March. Údarás na Gaeltachta did not comment when originally contacted in relation to the case.