FBD Holdings has agreed to sell its 50% stake in the hotels and leisure business (FBDPLL) to its partner and largest shareholder Farmer Business Developments. Farmer Business Developments, the original founder of the insurance company, still holds 24.6% of FBD.
The total cash consideration of the proposed deal is €48.5m, which will be used to further boost FBD capital reserves as it prepares for Solvency II.
This will be put to FBD shareholders in the coming weeks. However, as the deal is a related party transaction, Developments will be not allowed to vote. Developments holds 28.7% of the voting rights in FBD.
ADVERTISEMENT
The proposed deal will also be put to the shareholders of Farmer Business Developments.
FBDPLL owns and manages Irish and Spanish property and leisure operations including La Cala and Sunset Beach Resort in Spain and three hotels in Ireland: Castleknock, Faithlegg and the Tower Hotel, Waterford.
The carrying value of FBD’s interest in FBDPLL at year end was €47.2m. Last year the FBD share of the profits in the JV amounted to €1.9m.
The board has said that this proposed transaction has “clear strategic and financial rationale” as the group focuses its strategy on its core insurance underwriting business.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
FBD Holdings has agreed to sell its 50% stake in the hotels and leisure business (FBDPLL) to its partner and largest shareholder Farmer Business Developments. Farmer Business Developments, the original founder of the insurance company, still holds 24.6% of FBD.
The total cash consideration of the proposed deal is €48.5m, which will be used to further boost FBD capital reserves as it prepares for Solvency II.
This will be put to FBD shareholders in the coming weeks. However, as the deal is a related party transaction, Developments will be not allowed to vote. Developments holds 28.7% of the voting rights in FBD.
The proposed deal will also be put to the shareholders of Farmer Business Developments.
FBDPLL owns and manages Irish and Spanish property and leisure operations including La Cala and Sunset Beach Resort in Spain and three hotels in Ireland: Castleknock, Faithlegg and the Tower Hotel, Waterford.
The carrying value of FBD’s interest in FBDPLL at year end was €47.2m. Last year the FBD share of the profits in the JV amounted to €1.9m.
The board has said that this proposed transaction has “clear strategic and financial rationale” as the group focuses its strategy on its core insurance underwriting business.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS