Vol. 414 No. 6
41 Mr. Sherlock asked the Minister for Finance the cost to the Exchequer, up to the latest date for which figures are available, of legal, consultancy and brokers' fees arising from the privatisation of the Irish Sugar Company and the establishment of Greencore plc; if he will list the names of each company concerned and the amounts paid; if he has satisfied himself that the Exchequer got value for its money; and if he will make a statement on the matter.
The total cost to date to the Exchequer of the recent stock exchange flotation of Greencore plc is approximately £1.338 million of this amount:
1. £884,813 was paid in respect of underwriting, subunderwriting and brokers commissions (this represented 60 per cent of total fees/commissions which were split on a 60:40 basis between the Exchequer and the company based broadly on the amounts of money raised);
2. £308,736 was paid to the financial advisers (this included legal and accounting advice);
3. £43,454 was paid in respect of the commissions to brokers etc. on successful applications for shares (this cost was split on a 60:40 basis between the Exchequer and the company); and
4. £101,212 was paid in respect of publicity costs which were borne jointly with the company.
When account is taken of increased receipts of the order of £95,000 (being interest accrued on subscription moneys) the net payment from the department of Finance Vote is roughly £1.243 million giving a saving of almost £500,000 on the Estimates allocation of £1.7 million for the flotation. The Estimates provision was based on the standard underwriting and brokers fees and the saving of £500,000 arises from the Department's success in negotiating reduced rates of fee.
It would not be appropriate to indicate amounts paid to individual firms. However, the financial advisers and the solicitors to the Minister for Finance were J & E Davy and William Fry respectively; accounting advice was from Price Waterhouse. The underwriters were IBI Corporate Finance, AIB Capital Markets, UIB and Deutsche Bank.
