John Hennessy, a former partner with Arthur Andersen, senior counsel, part-time lecturer and experienced non-executive, ticked all the boxes when he was announced this week as the incoming chairman of agri-services group Origin Enterprises.
“John’s appointment as chair-designate of the board marks an exciting new chapter for Origin,” the group’s chief executive, Sean Coyle, said.
“He brings a wealth of experience, and I am confident that his stewardship will be instrumental in guiding the board as we execute the next phase of our growth strategy.”
But it’s an anointment that’s likely to send a chill through the ranks of executives at Euronext Dublin, which runs the Irish Stock Exchange.
For Hennessy has presided over the sales of two Irish public limited companies over the past five years as chairman of recruitment group CPL Resources and more recently Dalata Hotel Group when they waved goodbye to the stock market.
They are among a number of high-profile companies, including CRH, Smurfit Kappa (now Smurfit Westrock) and Flutter, that have departed the Irish exchange in recent years – a period that has also been marked by a dearth of initial public offerings (IPO).
Mr Hennessy hired Rothschild in March to help with a strategic review of the Dalata, best known for its Clayton and Maldron hotel brands.
It did the trick and flushed out a number of interested parties. A €1.4 billion takeover agreement was struck in July with Oslo-based investment firm Eiendomsspar and Swedish hotel company Pandox. It marked a 35.5 per cent premium to Dalata’s market value before the review was launched.
Dalata delisted from exchange on Monday after the sale was sealed.
This month five years ago, Mr Hennessy agreed to sell off CPL Resources to Japan’s Outsourcing Group in a deal worth €317.8 million – a 36 per cent premium over the company’s prices before the announcement was made.
Shares in Origin have barely moved since the now 69-year-old was announced as its incoming chairman.
But is it only a matter of time before Hennessy’s track record sparks Origin bid speculation in the market?
