EGM at IL&P in bid to raise capital
Financial institution Irish Life & Permanent has called an extraordinary general meeting of shareholders in a bid to meet €4bn in capital targets set by the Central Bank.
The meeting will take place on July 20 and shareholders will vote on proposals to issue the Government up to €3.4bn in ordinary shares and €400m in capital notes.
And if the proposal is agreed, the Government will take a 99pc stake in the institution.
The company’s shares will then be delisted from the main Dublin and London markets but will remain on the smaller ESM here.
IL&P believes the move is necessary “given the lack of alternative options available to raise the required capital by July 31 2011.”
It added that if the proposal failed, the Minister for Finance Michael Noonan will use existing legislation for force the raising of €4bn.
'”The timing of any such intervention would be at the discretion of the Minister for Finance and the Irish High Court and therefore not within the control of the directors,'” the company said in a statement.
The shareholders are being led by Malta-based investment fund Scotchstone Capital and are also looking for an extension to the July-end deadline for the recapitalisation.