Construction BUSINESS

In a recent development, the longstanding dispute among Walls Construction shareholders over a proposed “growth share scheme” has been resolved through out-of-court mediation, concluding a legal battle that persisted for several weeks. The resolution was disclosed to the Commercial Court by legal representatives, putting an end to the conflict that had reached the court last month. The mediation process, initiated after parties expressed their intent to explore settlement options, was confirmed successful by lawyers who reported to Mr Justice Denis McDonald.

Walls Construction, a leading Irish building firm with a substantial €472 million turnover in 2022, faced legal action defending its growth-share scheme, asserting that it had obtained the necessary shareholder and company consent. The contested proposal involved the issuance of growth shares representing 20% of Walls Construction Holding Limited (WCHL), designed to grant equity and economic rights to the next generation of management upon meeting specific financial thresholds. The legal dispute arose when McSorley Investments Limited, a 20% shareholder in Walls Construction Limited, expressed concerns about the scheme’s potential dilution of its interests, leading to legal action against the company and key individuals.

The resolution’s implementation is expected to take some time, allowing Walls Construction, which reported an €18 million pre-tax profit in 2022, to refocus on its high-profile construction projects, including the fit-out of Google’s offices and serving as the management contractor for LinkedIn’s new headquarters in Dublin. The successful mediation now clears the way for the company to move forward and addresses the concerns raised by McSorley Investments regarding the proposed growth share scheme.

Source: Tim Healy for Irish Independent