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Does this mean Quinlan lost money?

  • 09-08-2008 12:06am
    #1
    Hitchhiker's Guide to...
    Registered Users, Registered Users 2 Posts: 3,323 ✭✭✭


    This is a strange article: http://www.independent.ie/business/irish/quinlan-sells-50pc-stake-in-jurys-inns-for-8364200m-1449240.html

    I get the impression from this article that Quinlan have lost a fortune on their €1.2 billion investment in Jurys' Inns, but the article doesn't actually say that. The story almost seems to suggest that this is good news. Am i just reading the article wrong?

    I know its not really an investment question, but i've been following the activities of Quinlan Private for quite a while and am interested in them. Just want to double-check that my comprehension skills are still okay.

    The way i work it out is that they have spent €500million (excluding debt - they borrowed €700million for the deal) on Jury's Inn and probably spent another €100million on interest and servicing. They've sold 50% of the chain for €200million, so they've effectively lost a fortune on this deal?


Comments

  • #2
    Jivin Turkey
    Registered Users, Registered Users 2 Posts: 2,966 ✭✭✭Jivin Turkey


    I read this the same way as you and am equally stumped as to why this does not seem to be a big deal.


  • #3
    mike76
    Closed Accounts Posts: 27 ✭mike76


    i suspect they were in danger of defaulting on the debt repayments with a less than anticipated cash flow and needed an injection at current values.....it's a big deal for the private investors


  • #4
    dylanquinn
    Closed Accounts Posts: 1 ✭dylanquinn


    I suspect that he sold 50% of the brand franchise name Jurys and that this had nothing to do with the property assets that Quinlan retains- only a guess!


  • #5
    Cantoris
    Closed Accounts Posts: 375 ✭✭Cantoris


    New investor has invested on fundamentally the same terms as other investors. This must be one of the coups of the year by Quinlans. New guys see the growth potential of the business even in the current market as budget is resilient to an economica downturn. Also, if they want to invest in hotels, they cannot buy this sort of deal anywhere else.


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