State pays €1.3bn for Irish Life as takeover deal finally completed
THE Government has formally taken over Irish Life, after the acquisition from Permanent TSB was finally completed yesterday.
The State is paying €1.3bn for the investment group, and the completion comes a day after the High Court dismissed a challenge to the sale by a group of Irish Life and Permanent Group's shareholders, who claimed the price under-valued the company.
The deal finalises the recapitalisation of PTSB, which has received some €4bn from the State since March last year. Permanent TSB and Irish Life customers are unaffected by the sale, with their policies all remaining unchanged.
After the sale was completed, Irish Life's chief executive Kevin Murphy and finance director David McCarthy resigned from the Permanent TSB group board. Mr Murphy plans to retire from Irish Life at the end of the year.
PTSB bank chief executive Jeremy Masding will head the PTSB group. Alan Cook will chair both companies until they are totally separated.
Finance Minister Michael Noonan welcomed the completion.
"I am pleased that, having successfully defended a legal challenge (on the case), the acquisition of Irish Life can now be concluded. This transaction represents the completion of the recapitalisation of Irish Life & Permanent allowing the bank to focus now on the successful implementation of its proposed strategy,'' the minister said.
"Irish Life is a valuable asset and we will allow it to operate as a commercial entity with the clear objective of maximising the proceeds for the State on an eventual sale when market conditions allow."