DLOC and DLOM examined by expert
This case relates to a shareholder dispute in respect of two brothers and the Edwardian Hotels Group. In 2018 the various arguments relating to the shareholders’ relationships and the bases of valuation were put to the Judge and conclusions reached. This was the subject of an earlier article.
One surprising outcome of the former case was that the Judge determined that the fair price to be paid for a minority holding of some 19.9% was the market value of that holding plus half of the marriage value arising as a result of the acquisition of the shares by a person owning 5.28% of the shares but controlling a total of 74.5%.
The 2019 hearing dealt with the assessment of quantum. There were some very significant values involved. Some startlingly novel valuation concepts surfaced and had to be addressed by the Judge. The expert evidence neatly divided between the valuation of the hotels as assets of the group, and the valuation of the various shareholdings in the holding company.