Tuesday 21 November 2017

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

Nick Webb

Nick Webb

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.

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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