Thursday 26 April 2018

What it says in the papers: business pages

Michael Cogley

Michael Cogley

Here are the business stories you need to know about this morning:

Irish Independent

* A surge in companies making profits and consumer spending has brought the country's cashflow within touching distance of the pre-crash record set in 2007.

Figures to be released today will show that Revenue Commissioners collected almost €500m more tax than predicted for November, and nearly €3bn in the year to date.

The boom-like Exchequer returns, which are primarily driven by corporation tax and VAT, have surprised even the most senior politicians and officials in Government.

* A consortium of Chinese investors had indicated it was willing to pay $19.50 per share for Ireland-based Candy Crush Saga maker King Digital Entertainment, and could provide $3bn (€2.8bn) of financing to fund the deal.

But JP Morgan, acting for King, couldn't extract sufficient detail from the consortium about where the financing would come from, and who precisely was involved in the Chinese consortium.

Irish law firm William Fry was among the advisers to King, whose co-founder and chief executive is Riccardo Zacconi.

* House-builder Cairn Homes is set to close this week with an extra €200m in finance, as it builds a warchest for land acquisitions, potentially including Ulster Bank's prized Project Clear.

Together with around €330m of cash reserves already in place, the latest deals will give the house builder potential spending power in excess of half a billion euro to fund land acquisitions and construction.

Last night London Stock Exchange-listed Cairn Homes announced it is looking to raise around €47m from existing shareholders in the Irish house-builder's second major equity raise this year.

The Irish Times

* RSA, Ireland's biggest insurer made a loss of €176.6m last year as well as having received a capital injection of €137m from its UK parent company.

The injection of cash in the RSA's Irish business last year brought the total invested up to €399m over the course of 2013 and 2014.

Directors at the firm have highlighted that the company could have a capital shortfall when the Solvency II rules are implemented, in spite of the large injections its parent has invested.

* Ryanair is suing both Google and online travel agent eDreams for what it says is misleading advertising by using the company's trademark to direct customer to the eDreams website.

The airline has been calling for Google to implement greater transparency in online advertising to ensure that customers know when they are and when they are not booking from the official Ryanair website.

Ryanair is suing under trademark infringement and for selling goods in a way that customers might think they were actually buying from Ryanair.

* Unemployment during the month of November remained static at 8.9pc according to new figures from the Central Statistics Office.

The figure is down significantly from November of last year which stood at 10.4pc.

According to the figures there were 191,000 unemployed in the month of November which is down by over 32,000 from last year.

Irish Examiner

* New bankruptcy regime could protect thousands according to Bill Holohan, senior partner at Holohan Solicitors.

Mr Holohan also said that the new laws could add protection to Ireland against US vulture funds who bought billions of euros of distressed loans from Irish banks.

According to the report Mr Holohan also says that the Official Assignee won't be swamped by the new laws as the system has been ready to receive thousands of applications each year.

* A Chinese investment group have spent $400m (€378m) to take a stake in City Football Group, the group that owns both Manchester City and New York City FC.

The deal represents the most significant overseas investment in the game and will see China Media Capital Holdings and Citic Capital take a stake of over 13pc in the group.

The investors are said to be looking to expand the game in China, where President Xi Jinping wants to hold the World Cup.

* There will be no turnaround on the strict mortgage rules implemented by the Central Bank after the property bubble burst leaving thousands of Irish people swamped in negative equity.

According to chief economist at the Central Bank, Gabriel Fagan, there should be an obligation put on stakeholders within the property market to act in ways to avoid repetition of the past crash.

Mr Fagan said that memories of the previous banking crash could soon fade after the number of home loans advanced by banks fell last month.

Online Editors

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