PTSB seeks backing for share cleanup
The holding company for PTSB and its subsidiaries is seeking court approval for a reduction of share capital. PTSB Group Holdings, represented in the Commercial Court by Paul Gallagher SC, says the reduction is an important aspect in enhancing its regulatory position, and compliance with its future regulatory capital requirements.
In its application, the group wants to cancel some 3.6 billion deferred shares, which are a legacy of its capital reorganisations in 2011, when the State bailed out the former Irish Life & Permanent, and in 2015 when its initial public offer of shares resulted in the Government selling off a 25pc stake in the bank.
The application was made to the court after a special resolution affecting the proposed reduction was passed at the company's AGM in May 2017.
The groups says the deferred shares are worth €0.289 each, and have a total nominal total value of €1.09m. Under the terms of the purposed capital reduction scheme, holders of the deferred shares, which includes many smaller investors, will receive a payment of €1.5m.
The deferred shares were carved out of existing shares following reorganisations in 2011 and 2015. The matter will return before the court next month.