Providence Resources - Re: PVR Stream Log - O’Reilly’s Providence stake slashed under...

O’Reilly’s Providence stake slashed under share placing Vincent Ryan Published: 22 March 2015 Comment (0) Print WHEN the stock markets open tomorrow morning, Sir Anthony O’Reilly will no longer be the largest shareholder in Providence Resources. The businessman has seen his stake in Providence fall from 15.5% to 7.1% as ACC Bank moved to take control of his assets following a move by a number of banks against the former billionaire. Providence announced on Friday that it had successfully raised $28m (€26m) through a share placing and open offer. The issue of new shares will result in the dilution of Sir Anthony’s holding. “He probably won’t be the largest shareholder any more,” Tony O’Reilly Jr, Providence chief executive, said of his father. “There will be other shareholders now on foot of this placing.” O’Reilly said once the new shares are admitted to the market for trading on Monday, there will be a number of changes in the shareholder register. The open offer element of the fundraiser attracted the support of holders of 58.1% of the shares in the company. The share placing was taken up by about 25 institutional investors who were already shareholders, including Blackrock, Capital Group and Henderson Global Investors. “Our leading institutional shareholder base will now increase to 90% of the company through the placing and the support of existing shareholders,” O’Reilly said. “We got a huge vote of confidence through the market, which we are thankful for.” The company is still seeking to finalise a deal with a partner to develop its Barryroe oil find off the Co Cork coast, despite announcing it had agreed terms with one party last month. O’Reilly refused to name the prospective partner as the deal remains subject to financing, which is “not ideal”, he said. It is widely believed Sequa Petroleum, a private equity oil development company, currently seeking to raise money through a bond offering, is the most likely partner. “Percentages, cashback, operators’ share, the work programme — all of that has been agreed,” said O’Reilly. “There were over 25 documents. This wasn’t done on the back of a packet of cigarettes. This is a fully documented deal, but it is subject to financing and them delivering the financing to us.” As the deal has not been closed, he said, Providence has continued to talk to other parties that could become partners on Barryroe. O’Reilly said there has been a surge in interest since Providence announced it had secured further financing.