Friday 30 September 2016

Permanent TSB shareholder group moves to block IPO

Published 16/04/2015 | 02:30

Permanent TSB bank on Grafton street, Dublin. Photo: Collins
Permanent TSB bank on Grafton street, Dublin. Photo: Collins

The planned sale of €400m of shares in Permanent TSB could be thrown into doubt, if an application to the courts seeking an injunction blocking the deal is successful.

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A court hearing has been scheduled for Tuesday, April 21, after a shareholder group, including former Permanent TSB director Piotr Skoczylas of Scotchstone Capital, filed legal papers yesterday seeking injunctions to block the planned public offering of shares in the bailed out bank.

The sale is due within weeks and the money raised is to repay a debt owed to taxpayers.

The case seeking to block the move has been taken against the directors of Permanent TSB, the Irish Stock Exchange and the Minister for Finance.

The courts will be asked to prevent the deal unless a number of conditions are met, including the conclusion of a European Union Court of Justice case examining whether emergency laws used to nationalise Permanent TSB complied with European law.

The group taking the case also wants to prevent the Irish Stock Exchange from admitting new Permanent TSB shares for trading, if the stock is issued.

They also wants the courts to block Permanent TSB's planned sale of €5bn of so called non-core assets until the diposals are approved by an extraordinary meeting of shareholders.

Earlier this week Permanent TSB announced details of its plan to raise €525m from a mixture of selling shares and issuing new bonds to investors.

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