Donegal Investment Group plc (“Donegal Investment Group” or the “Company”)
21 May 2015
As previously advised in our announcement dated 5 December 2014, the Company has taken a shareholder oppression claim relating to its shareholding in Elst (the holding company of the Monaghan Middlebrook Mushrooms business).
The Commercial Court, a division of the High Court, gave judgment on 5 December 2014 in an individual module of the case, being the price at which the respondents (being the majority shareholders in Elst) might purchase the Company’s interest in Elst. The Court determined this price to be €30.6m. This price was based on a shareholding of 35% in Elst. In separate proceedings issued against the Company, the Court held that Danbywiske and the General Parties of the Wilson Partnership 1 had an option to acquire 5% of Elst that is held by the Company. If the Option is exercised and the transfer of shares completed, the Company’s shareholding in Elst would be reduced from 35% to 30%. On the basis of a 30% shareholding in Elst, the Company’s interest in Elst is valued by the Commercial Court at €26,228,571. The valuation and the entitlement to the Option are under appeal to the Court of Appeal.
The respondents (being the majority shareholders in Elst) admitted specified and unspecified acts of oppression and today the Commercial Court ordered the respondents to purchase the shares held by the Company in Elst at the price fixed by it on 5 December 2014 (which as noted above is under appeal). The Company will provide a further update at the appropriate time.
|Donegal Investment Group|
|Ian Ireland, Managing Director||Telephone: + 353 74 912 1766|
|Investec Bank plc (Irish Branch)|
|Jonathan Simmons, Director||Telephone: + 353 1 421 0351|