Minority discounts for ESOPs

[Guest newbe]

Question: At what point is the minority valuation discount for an ESOP eliminated? Background facts:

ESOP owns 42% of company (including voting) stock.

Other minority owners (not related to majority owner) own 3% of company stock. Majority owner owns 55% of company stock which is in NE. Majority Owner is in mid-70's and works less than 50% of time. Executives within company make almost all op decisions. Majority owner has a written retirement plan with the company to sell his stock to the ESOP upon his retirement (plan indicates written notice should be given by CFO to ESOP of election of owner to retire). Majority owner has announced his decision to employees (not in writing) to retire within 18 mos and requests all processes be initiated to make that happen (he has initiated an MAI full appraisal on the property-costs split between ESOP and Owner, meetings have been held between attorneys for owner and ESOP, outside valuation experts have prepared a valuation on the business, a sale/transfer date has been verbally agreed to by all parties to be 5/2003). Based on situation facts and since control transfer has been verbally agreed to, can the ESOP valuation for 12/31/02 be valued without a discount? Thanks for any help.