Irish Agenda: Mercury Rising on Ardagh’s Hot Docklands Property Deal

When Ardagh demerged into glass-making and distribution businesses in 2004, everybody assumed the British venture capitalist Hg Capital had backed the wrong horse.

Hg, or Mercury Asset Management as it was known, sold out of the glass-manufacturing arm, taking €1.10 per share in cash. It stayed in the distribution company, a rather useless-looking shell.

Hg looked none too clever when the glass-manufacturing company then went on an acquisition spree in Germany, and Paul Coulson, the financier, offered preference shareholders €4 apiece to sell out.

The rump Ardagh shares were valued at just 10c at the time of the demerger. Now called South Wharf, the shares closed at €5.50 last Friday, after the company agreed a deal with Dublin Port on the development of the old glass factory in Ringsend. It represented a two-year gain of 5,000%.

The huge jump in value arises from a legal loophole that potentially allowed South Wharf to buy the property from Dublin Port for €1m. To avoid lengthy litigation, the Port and South Wharf agreed to share the proceeds of the valuable site.

South Wharf’s interest in the glass factory is estimated to be worth at least €200m. At the time of the demerger, the lease interest was valued at just €10m in the Ardagh accounts.

What shrewd forebearance of Hg to remain as an investor. Its South Wharf shares are worth close to €60m, having cost the equivalent of £49,000 (€71,000) in 1992. Ardagh shareholders, including many former workers at the Dublin glass factory, who checked out in 2004 must be miserable.

Read the entire news on the source link below.

600450 Irish Agenda: Mercury Rising on Ardagh’s Hot Docklands Property Deal

See more news about:

Others also read

Owners of Lincoln Glass in Newport, Dan and Elayne Mason, celebrated their 50th anniversary in the business this year. Dan's parents, John and Grace Mason, established Lincoln Glass in 1956 and oversaw day-to-day operations for 20 years.
Potters Industries Inc., an affiliate of PQ Corporation, announced today that, effective February 15, 2007, the price on all Metal Finishing Glass Bead and Ground Glass product shipments will increase up to 3 cents a pound.
Edward A. Shriver Jr., a Pittsburgh architect who works in retail store design, encourages architects and retail owners alike to "think outside the box," light years away from the designs that have dominated American retail architecture in recent decades.
Hoya Corp., Japan's largest optical glass maker, agreed to buy camera maker Pentax Corp. for 90.6 billion yen ($765 million) to add endoscopes and surgical scissors.
Strange specimens of natural glass found in the Egyptian desert are products of a meteorite slamming into Earth between 100,000 and 200,000 years ago, scientists have concluded. reported that Tarnaveni (Romania)-based Gecsat, estimates an approximately 6.4 million-euro turnover for this year, a 16% drop against last year, when the company posted a 7.6 million-euro turnover.

Add new comment