NTR and shareholders split over distribution of €175m

Tensions are believed to have emerged between investment group NTR and certain shareholders on how the company might distribute $196 million (€175 million) from the sale of US wind farms to shareholders.

Announcing its full-year results yesterday, NTR said it had established a committee to consider various options with a view to delivering a “liquidity event” before the end of the year. This could involve either a share redemption scheme and/or a dividend option.

The former may see disgruntled investors, such as One51 and investment vehicle Pageant Holdings, exit the business.

Options

The group's other main shareholder, Woodford Capital, which is controlled by NTR chairman Tom Roche and his family, has indicated that it does not intend to sell its stake.

“A committee of the board, comprised solely of independent directors, has been established for the purpose of considering the various options, with a view to recommending a proposal which is fair and optimal for all shareholders,” NTR said.

It is believed the tensions surround the price per share that will be paid to shareholders and the timing of a distribution.

A source close to one shareholder said “things are on a knife-edge” and there had been a lack of engagement on price.

NTR declined to comment but it is understood the company is happy with the progress that has been achieved to date.

The shareholders who want to exit NTR are thought to be looking at a price of between €2.50 and €2.75 a share. The stock is currently trading at €2.45.

In an investor presentation yesterday, NTR said its net asset value could increase to €230.4 million depending on certain deferred payments. Of this, 93 per cent is cash or receivables, which, if distributed among shareholders, would amount to €2.35 a share.

IBI Corporate Finance was hired by NTR to advise on pricing and options for a distribution of capital.

Net profits

NTR said net profits rose 14 per cent to €35.7 million for the year to the end of March, while revenues were marginally down at €45.5 million. The group said profits were boosted by foreign exchange gains predicated on the strengthening of the dollar.

It also had a tax credit of €8.1 million from changes in inflation assumptions used in the calculation of a deferred tax liability relating to the sale of Dublin’s West-Link toll bridge.

Total assets at the end of the year stood at €737 million, up 19 per cent on the €618 million the previous 12 months.