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Irish state, Britain’s NatWest to sell 6% stake in Permanent TSB
Global Banking & Finance Review®
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LONDON/DUBLIN (Reuters) -Ireland’s finance ministry and British lender NatWest Group said on Thursday they would together sell 6% of Irish bank Permanent TSB, the first sale of shares in the lender by the Irish state since 2015.
LONDON/DUBLIN (Reuters) -Ireland’s finance ministry and British lender NatWest Group said on Thursday they would together sell 6% of Irish bank Permanent TSB, the first sale of shares in the lender by the Irish state since 2015.
The two shareholders will each sell 3% in the group to dispose of a combined 33 million shares to institutional investors via an accelerated book building process, they said in parallel statements.
Investor demand for the shares covered the sale, bookrunner Goldman Sachs said a few minutes after launching the deal.
The finance ministry will continue to hold about 59.4% of PTSB, the country’s third largest mortgage lender, after the share sale, while NatWest will retain 13.6%.
PTSB, the smallest of the three domestically owned banks that survived Ireland’s financial crash a decade ago, was effectively nationalised in 2011.
The Irish government cut its 99.2% shareholding to 75% in a share offer in 2015 but has not sold any shares in the bank since.
NatWest took a near 17% share in the bank as part of PTSB’s recent acquisition of around 7.6 billion euros ($8.37 billion) of loans and assets from NatWest’s Irish unit Ulster Bank, which is exiting the Irish market. That further diluted the Irish government’s holding to 62%.
($1 = 0.9084 euros)
(Reporting by Pablo Mayo Cerqueiro in London and Conor Humpries and Graham Fahy in Dublin; Editing by Kirsten Donovan and Susan Fenton)
A financial crisis is a situation where financial assets suddenly lose a large part of their nominal value. It can lead to a collapse of financial institutions, severe disruptions in the economy, and widespread economic downturn.
Institutional investors are organizations that invest large sums of money in securities, real estate, and other investment assets. Examples include pension funds, insurance companies, and mutual funds.
Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold. They facilitate the raising of capital by connecting investors with those who need funding.
The mortgage market is a sector of the financial market that deals with the origination, buying, and selling of mortgages. It plays a crucial role in providing financing for home purchases.
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