Danu sells Mercantile pub group stake for over €10m
Investment group Danu Partners has exited the Mercantile Group of pubs by selling its stake to the majority shareholders for over €10m. After debt, the net proceeds were over €6m, it is understood.
The group of seven pubs, including Cafe en Seine and the George, was deemed to have a net asset value of €50m, sources said.
Following the deal signed off on Friday, Mercantile Group will now be owned outright by EMI-MR, owned by Michael Breslin and Maurice Regan. Mercantile settled a legal action with former shareholder Frank Gleeson earlier this year.
Pat Burke, chief executive of Mercantile Group, declined to comment on the details of the deal but said that it would push ahead with a €28m investment plan, which includes a development of the Mercantile Hotel. All projects, bar the hotel, should be completed by Easter 2018.
Meanwhile, it is understood that Danu - owned by Mark O'Meara and Setanta Sports founders Leonard Ryan and Mickey O'Rourke - will seek two new sites for its Smith & Wollensky chain in the US. There are six restaurants in the US. Danu owned 22pc of the Mercantile Group.
Sunday Indo Business