Treasury Holdings to get 55.2% of REO

Treasury Holdings will get 55.2 per cent of quoted property vehicle, Real Estate Opportunities (REO), which raised £38 million sterling (€56 million) after shareholders approved four transactions yesterday.

At an extraordinary general meeting (egm) in Jersey, shareholders approved a number of motions that will leave the Richard Barrett and John Ronan-owned Treasury with 139.66 million of REO's 253 million shares once all transactions are finalised today.

A statement from the company pointed out that the holding amounts to 55.2 per cent of REO. Treasury was originally supposed to get 56.5 per cent of the company.

An agreement by Irish developer Noel Smyth and British Group Dawnay Day to sell their 79 million shares for £46 million sterling (€47.7 million) triggered the egm and succeeding transactions.

Yesterday, REO placed 51 million of these shares for £29.835 million or 58.5 pence a-share, and cancelled the remainder.

At the same time, REO agreed to acquire two Treasury Holdings' controlled properties in Barrow Street, Dublin and in Balbriggan in the north of the county, for 83 million of its shares.

Of these, it placed 14 million shares (payable to individuals with a minority interest in the Balbriggan property) or 58.5 pence, or £8.2 million and Treasury retained the other 69 million. The transactions mean REO issued a total of 65 million shares for £38 million. It had originally intended to place 59 million.

Shareholders backed the deals and waived rule nine of the Stock Exchange Takeover Code, which requires anyone who acquires more than 29.9 per cent of a listed company to bid outright for it.

Treasury indicated last month that it would ultimately look to cut its holding to 50.1 per cent, and pledged not to use its votes to compromise REO's independence.