The three founders of Cairn Homes, the quoted builder that is buying part of the RTE site at Montrose in Dublin, will receive shares worth almost €55m this week under an incentive scheme.
The company is expected to confirm that the conditions of the founder share scheme have been met, triggering the conversion of “founder shares” into ordinary shares. An announcement is likely this week as the test period for calculating the value of the shares to be issued ran to the end of June. Last year Cairn announced the conversion on July 19.
Stockbroker Davy has estimated the Cairn founders will be awarded about 35.4m shares at a price of €1.59 each, a total value of almost €56.3m. The value of the shares issued may be slightly lower, however, based on the published terms of the founder scheme.
Cairn director Alan McIntosh will be entitled to half the shares issued. Michael Stanley, Cairn’s chief executive, is in line for 35% of the share allocation, and his brother Kevin, Cairn’s chief commercial officer, is entitled to 15% of the shares.
The new shares would equate to an almost 5% stake, Davy noted. Cairn’s shares closed at €1.42 in London on Friday after a fall-off in the past month. The company is valued at over €1bn.
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Cairn is paying €107.5m for 8.6 acres at Montrose, where it plans to build 500 apartments and 10 houses. The company expects to sell up to 400 homes this year, rising to 850 next year and 1,200 in 2019. Davy said Cairn shares could be worth up to €1.82 each, depending on how the company uses its cash in the coming years.