Melcorpo Property Developments (MPD), one of the backers of the €300m Citymart shopping centre planned for Kilkenny, has agreed to sell its shares and €4m of its loan notes in the centre to Kilkenny Co-operative Livestock Market for a nominal sum.

However, the sale, which was agreed in May, is subject to the consent of National Irish Bank and that consent was taking months, according to the directors' report for MPD.

MPD is owned by Nicholas Furlong and Norman Lyons, who are best known for their involvement in DVD distribution business Pilton Group, which DCC acquired for up to €42.5m in 2005.

Lyons had been bought out of the business several years before the disposal to DCC.

The Kilkenny Co-operative Livestock Market already owned the other 50% of Citymart.

MPD had written down the carrying value of the company's investment in Citymart to nil in 2008.

The €300m scheme envisioned a 14.2 acre development of 25 shops, restaurants, a cinema, medical centre, hotel, apartments and a 1,200-space car park on the former mart site, but it was rejected by An Bord Pleanála against the advice of its own inspector. The mart has already been relocated outside the city.

MPD made a loss of nearly €290,000 for the year ended 31 January, 2010, compared to a loss of €4.38m the previous year.