Estate Deal Hits Snag Over £50,000 Cash Offer

Trustees cite “pure inducement” as reason for rejecting earlier bid

A substantial cash payment from a potential buyer has dramatically altered the trajectory of a High Court battle over the sale of the Barne Estate. Trustees rejected a €15 million offer after receiving £50,000 in brown envelopes, a move they deemed a “pure inducement” and a breach of their ethical codes.

Cash Envelopes Raised Red Flags

The High Court heard that a director of the Barne Estate trustees, **Benjamin Newman**, testified that the £50,000 cash offered to the estate’s beneficiaries, **Richard Thomson-Moore** and his sister **Alexandra**, in September 2023, was a significant turning point. Mr. Newman stated the offer raised a “red flag” for the trustees, leading them to view it as an unacceptable incentive.

Up until this point, the trustees had favoured **John Magnier’s** bid over a higher offer from construction magnate **Maurice Regan**. This preference reportedly caused “frustration” among the **Thomson-Moores**, who are the primary beneficiaries of the Co. Tipperary estate.

Disputed Handshake Agreement

Mr. Magnier is seeking to enforce a deal he claims was finalised with **Richard Thomson-Moore** on August 22nd, 2023, at **Magnier’s** Coolmore home. The Magnier side has sued the Barne Estate, **Mr. Thomson-Moore**, and associated trust companies, asserting the deal was “unequivocally” agreed.

However, the Barne defendants maintain no such agreement was ever reached, as trustee consent was necessary. They subsequently accepted **Mr. Regan’s** improved offer of €22.25 million for the 751-acre property.

Richard Thomson-Moore himself told the court that while a price was agreed with **Mr. Magnier**, a complete “deal” had not been struck. The trustees initially supported the **Magnier** offer, considering **Mr. Regan’s** higher bid “provocative.” Their loyalty shifted after an exclusivity period expired.

Offer Declared “Untoward”

The court was informed that on September 7th, 2023, just two weeks after the alleged handshake agreement, **John Magnier** visited the Barne Estate with his son, **JP**. According to the **Thomson-Moores**, estate agent **John Stokes** delivered two brown envelopes containing a total of €50,000 in cash, provided by **JP Magnier**.

The **Magnier** side contended the money was a gesture of “appreciation” for allowing them onto the land before a sale was confirmed. **Benjamin Newman** stated he has since accepted this explanation based on evidence presented by the **Magnier** party.

Nonetheless, **Richard Thomson-Moore** described the cash delivery as “shocking” and the offer of “envelopes stuffed with cash” as “untoward.” The **Thomson-Moores** subsequently returned the money.

Two Key Factors Shifted Trustee Loyalty

**Benjamin Newman** detailed two primary reasons why the trustees turned from **Mr. Magnier** to **Mr. Regan** in October 2023. The first was the cash offer to the **Thomson-Moores**, which trustees deemed a “pure inducement.” This raised “significant” concerns regarding the trust’s “anti-corruption and bribery codes of practice.”

The second factor involved due diligence on **Mr. Regan’s** €22.25 million bid. This offer was nearly 50% higher than **Mr. Magnier’s** final €16 million proposal, which also included a €500,000 trust for a child of **Richard** and **Anna Thomson-Moore**. Due diligence on **Mr. Regan’s** bid was only possible after the one-month exclusivity period with **Mr. Magnier** concluded.

**Newman** explained that the purpose of this due diligence was to confirm **Mr. Regan’s** “genuine, bona fide” interest and to ensure his bid wasn’t merely “provocative” to disrupt a sale to **Mr. Magnier**.

Commercial Reality Prevails

Until the exclusivity agreement expired, the trustees were “absolutely very happy and keen” to proceed with **Mr. Magnier**, despite his lower offer. **Newman** reiterated that the price agreement was “never presented to the trustees as a deal being done,” as no one at the August meeting had the authority to finalise a deal without their approval.

Once the exclusivity period ended at the close of September 2023, the transaction transitioned into a “purely commercial” negotiation, and **Mr. Regan’s** significantly higher bid became the preferred option.

**Benjamin Newman** informed the court that **Mr. Regan** had provided a “non-refundable” deposit and financed the estate’s legal defence costs against **Mr. Magnier’s** action, with interest. The €22.25 million offer was described as “life-changing,” far exceeding the trustees’ expectations. The case continues before Mr Justice Max Barrett.