One51 chief holds off challenge to his leadership

ONE51 CHIEF executive Philip Lynch has managed to stave off a challenge to his leadership of the company after two board members questioned the future of his position at a board meeting last week.

The board dissent emerged at a scheduled meeting last Thursday.

One51’s share price has come under pressure over the past few months, with the stock now trading at around 90 cents on the grey market.

One51, the investment vehicle which was spun off from agri-food company IAWS, had been expected to publish its 2010 results by the end of May, in line with its policy over the last number of years.

While the results are due to be published within the next few weeks, there has been speculation that the company was awaiting greater clarity on debt that is due for refinancing this year.

The group’s syndicated loan, which stood at €325 million at the end of 2009, is due for refinancing in December.

Sources close to the company have indicated that the facility will be renewed within the coming weeks.

The group entered the five-year facility in December 2006.

The company’s bankers as listed in its 2009 annual report are AIB, Bank of Ireland, Bank of Scotland (Ireland), KBC, Rabobank and Ulster Bank.

While Mr Lynch remains at the helm of the investment vehicle he founded, he is likely to face further challenges from dissident shareholders at the company’s agm due to take place at the end of July.

Last year shareholder Gerry Killen led a high-profile campaign against Mr Lynch, culminating in a heated agm which resulted in Mr Lynch remaining in place with majority shareholder support.

One51’s 2010 results are expected to show a significant writedown on the company’s investment in NTR, which earlier this year announced a tie-up with investment firm BlackRock after the company’s solar energy venture disappointed. The group also has a significant investment in ICG.

Another holding in IFG will have benefited from the recent upturn in the share price of the financial services company, which is currently a potential takeover target for two private equity companies.

Mr Lynch, the former chairman of the board of the National Children’s Hospital, has been at the centre of a legal challenge taken against AIB and two firms of solicitors concerning a €25 million loan forwarded to the Lynch family for the purchase of development land.