Irish Life and Permanent will be effectively nationalised with the injection
of up to €3.8 billion in State funds by the end of next month, the company has
The company told shareholders in a circular published today that it proposed
issuing up to €3.4 billion in ordinary shares and a further €400 million in
contingent capital to the Government, leaving the State with a shareholding of
more than 99 per cent.
As a result, the company will delist from the main Irish stock exchange and
expects to re-list on the junior Irish market, the Enterprise Securities
Market, on August 22nd. An extraordinary general meeting will be held on July
20th to approve the issuing of the ordinary shares to the Minister for Finance.
The State will inject the capital to meet the €4 billion capital target set by
the Central Bank following the stress testing of the banks last March before a
deadline of the end of July under the terms of the bailout by the European
Union and the International Monetary Fund. The company made a gain of €300
million from a debt buyback in May.
The company said that its board had decided to take the capital injection from
the State “having taken legal and financial advice”, believing it to be “in the
best interests of the company and the shareholders as a whole, given the lack
of alternative options available to raise the required capital by July 31st
Irish Life and Permanent warned that if shareholders do not vote for the State
recapitalisation, its directors believed that Minister for Finance Michael
Noonan would be likely to use the Credit Institutions (Stabilisation) Act 2010
to ensure that the company would be able to meet its capital requirements.
“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.
The State capital injection will not affect the sale of Irish Life, the
company’s life assurance business. It’s understood that the company will issue
an information memorandum relating to a trade sale of the company in the coming
Irish Life and Permanent will be the fifth Irish financial institution to come under
Government control. Bank of Ireland, which is 36 per cent owned by the State,
is trying to raise enough capital from private investors to avoid majority
Here we go again “THIS IS SHEER MADNESS” nobody gets to go to jail except those of
us who cannot pay the penal interest rates this gangster led financial toxic
dump has foisted on to the shoulders of their hapless mortgage holders of which
I am one of them! The government is allowing the gangsters in this company to
fleece us their customers so as to allow then to raise their capital base
instead of having them arrested and put in jail .This toxic dump should be
allowed to go bust.
This is the faith of all the IRISH BANKS
Whatever happened to “Not
one red cent more”??