Confusion over Dawnay's stake in Premium Bars

A question mark hangs over the ownership of Dawnay Day's 29.4% stake in Premium Bars & Restaurants, in the wake of the investment fund being...

A question mark hangs over the ownership of Dawnay Day's 29.4% stake in Premium Bars & Restaurants, in the wake of the investment fund being placed into administration.

Just under two million shares in Premium Bars & Restaurants — a 5% stake in the company — thought to be previously owned by Dawnay Day have been sold for the knock-down price of 30p. Shares had been trading at slightly more than twice that figure before the sale.

Dawnay's creditors are believed to have taken control of a further nine million shares in Premium, which they could sell to recover losses.

The share sale has bumped Premium down to a new level, with shares trading for 35.5p on Monday.

It is thought that Dawnay Day owned 80% of its 29.4% stake in Premium in the form of so-called contracts-for-difference, and it was in default as it faced margin calls in recent weeks.

Premium chairman Mark Jones said it was hard to recall a major shareholder of a public listed company getting itself into financial trouble so quickly.

He added: "We're in uncharted territory. It's likely to be a number of weeks before we hear from the parties involved."

Dawnay Day representatives KC Wong and Alka Bali resigned as non-executive directors of Premium two weeks ago. Administration came for Dawnay Day after it was forced to sell a 20% stake in F&C Asset Management at a loss of more than £80m, following a margin call from its financial backers.

Dawnay Day also owns Indeed Group, the tenanted pub company that has around 30 pubs under management with Scottish & Newcastle Pub Enterprises.