Friday 27 April 2018

Deadline looms for bidders in Irish Life takeover battle

LOUISE McBRIDE

THE takeover battle for Irish Life, the life assurance arm of Irish Life & Permanent (IL&P), steps up this week as the deadline for the first round of bids draws to a close.

Insurers Allianz, Axa and Met Life are believed to be among those likely to make a bid for the company, along with private equity players.

Irish Life has been valued at about €1.7bn, but the price fetched is expected to fall way short of that. "No outside institution would offer such a sum," according to one insurer. Industry sources believe the sale could raise as little as €1bn for the Government.

Any money raised would be used to plug the €4bn capital shortfall in IL&P. The company has until October to raise that €4bn.

If a trade sale is not successful, Irish Life could be launched on the stock market -- but only if such a move raises more money than a trade sale.

IL&P is expected to become the fifth Irish bank to fall under State control shortly. The Government must go to the High Court to take over IL&P after shareholders in the company voted against plans to take over the bancassurer last week.

Sunday Indo Business

Business Newsletter

Read the leading stories from the world of Business.

Also in Business