A €1.6 billion takeover of PTSB by Austrian bank BAWAG faces a High Court challenge from four shareholders who are objecting to the acquisition, rte.ie reported.
Investor challenges high court approval of the sale
The High Court convened to sanction the acquisition that would see the Irish State sell its 57% stake in the bank. In July, shareholders approved the takeover by a 91% margin, a tally that included the vote cast by Minister for Finance Simon Harris on behalf of the State. Investor Piotr Skoczylas argued in court that excluding the ministerial vote leaves the approval at 64%, falling short of the required 75% threshold.
Skoczylas also claimed that businessman Eamon Waters, whose company holds a 7% stake in PTSB, had links to the Irish Government that influenced his vote in favor of the transaction. Excluding both the Minister and Waters would mean 60% of participating shareholders voted against the acquisition, according to Skoczylas’s submissions.
Department of Finance and PTSB Defense
Legal representation for the Department of Finance countered the allegations sharply. Lyndon MacCann SC told the court there was not a scintilla of evidence that the Minister failed to secure the best price reasonably available, adding that no evidence points to a knockdown sale. MacCann noted it is no secret the State has long maintained a policy to exit the banking sector.
Kelley Smith SC, representing PTSB, detailed the formal sales process launched in October of the previous year following a decision supported by the Minister. The process yielded six non-binding proposals, whittled down to three and then two, before BAWAG submitted a cash offer of €2.97 per share in April. Smith added that objecting shareholders had previously brought two complaints to the Irish Takeover Panel, neither of which was upheld.
Judge permits finance official cross examination in court
Mr Justice Michael Quinn granted a request from Skoczylas to cross-examine Des Carville, head of the Department of Finance’s Shareholding and Financial Advisory Division. However, the judge drew a firm boundary, stating he would not permit cross-examination on historic matters.
Axis Capital, a firm co-founded by banker Mark Duffy which had previously indicated potential interest in bidding for PTSB, was also represented in court. Lutz Hartmann, speaking for Axis Capital, confirmed the company would follow instructions from the Irish Takeover Panel not to publish information to potential funders without prior consent.
Details of the BAWAG takeover value and state stake
What is the total value of the BAWAG takeover deal for PTSB?
The acquisition values the transaction at €1.6 billion, with BAWAG offering a cash price of €2.97 per share.
What stake does the Irish State currently hold in PTSB?
The State holds a 57% stake in the bank, which will be sold to the Austrian banking group if the High Court sanctions the agreement.
Who approved the transaction initially and when?
Shareholders voted 91% in favor of the takeover during an emergency general meeting held in July.
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