Permanent TSB: Stock consolidation reduces number of shares by 99pc
A stock consolidation at Permanent TSB has reduced the number of shares by 99pc.
The change does not change the ownership stake in the bank, which is more than 99pc state owned. However, it means that every 100 old shares have been replaced by one new share.
The stock consolidation is part of a process to simplify the bank’s capital structure ahead of a planned sale of shares to raise €525m.
The bank said today that the share reorganisation as well as the adoption of new memorandum and artic had been implemented in accordance with the previously announced timetable. The changes to the share structure will take place automatically, following share holder vote last week.
New share certificates will be issued to shareholders, and existing share certificates will be invalid and will be cancelled.
Permanent TSB is now expected to issue an update to the market regarding its capital raising plans tomorrow, along with a trading statement.
The sale of new shares as part of the planned capital raising will lead to a dilution of the stake in the bank held by the current shareholders, including taxpayers.