The European Central Bank has granted regulatory approval to Bawag for its full acquisition of PTSB, Ireland’s third-largest domestic bank, the Austrian lender has announced.
This “represents an important milestone toward completion of the transaction”, worth €1.6 billion in total or €2.97 per share, Bawag wrote in a statement.
However, the proposed bid is still subject to High Court approval, with proceedings between the two financial institutions, the Minister for Finance (who owns a 57.5 per cent stake in the Irish bank) and a group of four minority shareholders having taken place last week.
The High Court’s ruling on the proposed scheme of arrangement is likely to be delivered sometime next week. This represents the final step in the months-long journey for Bawag to acquire PTSB.
RM Block
Last week, the court heard there was “simply no evidence” that the proposed bid “is a bad deal for shareholders”, while it remains the “only price on offer” despite “musings and mutterings” otherwise.
Axis Capital, a corporate advisory firm cofounded by former Bank of Scotland (Ireland) chief executive Mark Duffy, had attempted to seek a court adjournment of up to six weeks to bid time to put together a rival bid for the bank. It “is not within a country mile” of being able to do so, counsel for the Minister for Finance, told the court.
PTSB shareholder Piotr Skoczlas, representing three other minority shareholders who hold a total 0.00287 per cent share in PTSB and oppose the Bawag offer, told the court the Minister for Finance “unequivocally” controls the Irish bank and briefly questioned the constitutionality of his holding a majority stake in the company.
He also argued that the Minister enjoyed “special, incredible” rights as a majority shareholder and had access to information not shared with other shareholders during the consultation process of the bid, rendering it legally unsound.
