Business Irish

Wednesday 17 September 2014

Chadwick's Pochin exit is more than a little painful for Michael

Published 15/06/2014 | 02:30

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Grafton Group chairman Michael Chadwick must be glad to see the back of his personal investment in British construction group Pochins. It was a pretty sucky punt.

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Chadwick and his family own a near 24pc stake in the AIM-listed business, which last week agreed an almost €12m buyout led by members of the extended Pochin family.

The Chadwick family have been investors in the company for over 15 years, steadily building up a stake in the early 2000s, through the Quiros investment company. The Cheshire- based company was involved in property development and investment.

Chadwick bought a big block of shares in 2005 at prices of around £2.45 (€2.96) each. Shares in Pochins touched £4.02 (€4.85) in 2005. The buyout deal was struck at 45p (54c) a share – a fraction of the boomtime price

Back in the day, his stake was worth around €26m. He'll gross closer to €3m on this exit. Even for a man who has a 8.36pc stake in Grafton worth €140m, it's got to hurt. A lot.

However, there may be an upside, as the nitty gritty of the deal reveals that Pochins has agreed a complex transaction with Chadwick's own personal pension fund, which sees it offload a €14.3m property portfolio to a fund associated with the Grafton chairman.

He didn't steer the Woodies owner through the darkest days without having an eye for value.

Sunday Indo Business

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