Dublin-listed company South Wharf has reached agreement with Dublin Port on their dispute over the site occupied by the company in Ringsend in Dublin.
The 25-acre site is occupied under long leases by South Wharf in connection with the glass manufacturing and glass packaging agency business. The area was re-zoned in 2003 and 2005 to permit commercial, residential and retail use.
Last year, one of the company's subsidiaries applied to Dublin Port to acquire full ownership of the Ringsend site. Dublin Port opposed the move, and issued proceedings seeking repossession of the land. South Wharf was formed after the demerger of Ardagh Glass.
A statement from South Wharf said that under the terms of the deal, both parties had conditionally agreed to settle the outstanding legal actions between them in relation to the site, subject to the conditions being fulfilled.
Under the agreement, third parties will be invited to tender to acquire the Ringsend site by acquiring control of 100% of the issued share capital of South Wharf. South Wharf and Dublin Port have agreed on a minimum figure of €250m.
Dublin Port has agreed to convey its freehold title in the Ringsend site to a subsidiary of South Wharf on the completion of this process. Dublin Port will be entitled to 33.6% of the sum paid by the successful bidder. The remainder, after expenses, will be distributed to South Wharf shareholders in consideration for the cancellation of their shares. The company's listing would then be cancelled.
South Wharf will also carry out a restructure, after which it would hold only one subsidiary in which all its interests in the Ringsend site would be isolated. The rest of the business will be demerged into a new holding company, Lantor, though the shares will not be listed on any stock exchange or over the counter market.
'Shareholders in South Wharf would receive shares in Lantor pro rata to their existing holdings. It is not expected that any material value will ultimately be realised for the shareholders of Lantor,' the statement said.
