DCC has no intention of selling its 50pc stake in catering services group Kylemore despite €6.5m offer
DCC said it has no intention of selling its 50pc stake in catering services group Kylemore (KSG), despite a €6.5m offer for the stake from its founding family, the Hogans.
The Hogan family, which owns the other 50pc of the business, made the offer public this morning.
But a spokesman for DCC said this afternoon that the group had already rejected an indicative offer from the Hogans as being too low and said the company was “somewhat surprised” at today's statement from KSG.
“DCC wouldn’t normally comment on such matters,” said the spokesman, “However, DCC is happy with the performance of its shareholding in KSG and has no intention of selling.”
He added that the family had previously indicated it wanted to make the €6.5m offer to DCC but that the group believed it “didn’t reflect the value we placed on the business and that we had no desire to sell”.
A spokesman for KSG said that the Hogan family believes the 6.5 times earnings before interest, tax, depreciation and amortisation (EBITDA) multiple used to value the business “provides a fair value for DCC’s holding”.