Mr Conor Killeen and two of his partners in Key Capital are cashing in their investment in Dublin stockbroker NCB one year after becoming involved with a management buyout (MBO) at the firm.
The move will see an estimated 10 per cent stake in NCB being sold on to remaining investors, who include Fermanagh-based entrepreneur Mr Seán Quinn.
Mr Quinn, who took a 20 per cent holding in NCB last November, is likely to raise his share of the firm to about 25 per cent. NCB management and staff can be expected to soak up the remainder, although none of the parties involved gave details on this yesterday.
Mr Killeen, who will step down from his role as chairman of NCB, will take up a non-executive directorship with Quinn Group.
He is also expected to re-establish Key Capital as an independent corporate and capital markets advisory firm.
Key Capital has been in existence since 2001 but was effectively subsumed into NCB last year.
The firm specialised in raising funds for corporates, having advised on deals such as the €89 million buyout of Alphyra before the NCB MBO.
Mr Killeen will be accompanied in his latest venture by Mr Kyran McStay and Mr Ken Mintern, who also joined NCB as part of Key Capital last year.
Mr Liam Booth, who also worked for Key Capital, will remain with NCB's corporate finance department.
The price to be paid for the collective holding of Mr Killeen, Mr Mintern and Mr McStay in NCB was not disclosed yesterday although they are expected to realise a profit on their investment.
It is thought that the stake could be awarded a value similar to the price Mr Quinn paid for his 20 per cent holding last year.
Market estimates at that time pointed to a value of some €3 million for the Quinn purchase.
Mr Killeen, who is one of the most respected financial professionals in the Irish market, played a crucial role in getting the NCB buyout over the line last year. The broker had earlier in 2003 been through a failed acquisition by a French firm and another MBO attempt.
The successful MBO was facilitated by Mr Dermot Desmond's IIU, which acted as an interim institutional backer before Mr Quinn's Quinn Financial Services filled the role.
Before Key Capital, Mr Killeen worked as global head of equities at Dresdner Kleinwort Wasserstein, having also held the role of global head of equity capital markets at UBS.
He said yesterday that it was the "right time" to move on from NCB following the bedding down of the MBO.
NCB chief executive Mr Conor O'Kelly paid tribute to the "substantial contribution" Mr Killeen had made to the firm over the past year.
Mr Quinn expressed delight at Mr Killeen joining his company's board.
Mr Killeen will be replaced as chairman of NCB by Mr Breffni Byrne, who will hold the position in a non-executive capacity. Mr Byrne is a former senior partner at Arthur Andersen.
He was recently appointed as director of NCB and also sits on the boards of Irish Life and Permanent, Coillte Teoranta and Tedcastle Holdings.
