This article is from page 10 of the 2006-04-25 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 10 JPG
THE founding chief executive of Clare FM has described as “much too low” an offer by the company’s board to shareholders to make a profit of 50 per cent on their original investment in the station 14 years ago.
Caimin Jones, also a small shareholder, dismissed the €2 offer as “much too low”.
“The offer by the board of Clare FM to buy back shares at €2 each is at least some recognition of the role played by those who responded so positively to the 1992 share drive,” said Mr Jones, CEO from 1989 to 1994.
“As a minority shareholder to whom this offer has also been made, the issue for me is whether or not the share price of €2 is reasonable.
“Given the buoyancy of the radio station market currently and even allowing for Clare FM’s relatively low profit levels, my strong feeling is that the €2 offer is much too low.
“I am surprised that the accompanying documentation contains no independent analysis as to the reasonableness of the Board’s offer.
“Neither does it contain any opinion on the offer from Clare FM’s own auditors, Deloitte and Touche. Their view would have assisted me in arriving at a decision.
“Taking what I know into consideration and speculating on what I don’t know, I intend to retain my shares in Clare FM.
“This should not be interpreted in any way as advice to other shareholders.
“Each person will make their own evaluation and arrive at a decision best suited to his or her needs.”
In 1992, Caimin Jones was involved in the fundraising drive that attracted 530 shareholders from all walks of Clare life to invest in Clare FM.