Home / Business and Economy / Bawag Buys Irish Lender PTSB for €1.62 Billion
Bawag Buys Irish Lender PTSB for €1.62 Billion
14 Apr
Summary
- Austrian bank Bawag agreed to acquire Irish lender Permanent TSB.
- The deal values the Irish retail lender at 1.62 billion euros.
- Bawag offered 2.97 euros per share, a 26% premium.
Austrian bank Bawag has reached an agreement to acquire Irish lender Permanent TSB (PTSB) for 1.62 billion euros. The proposed transaction values the Dublin-based retail bank at 1.90 billion US dollars.
Bawag is offering 2.97 euros in cash for each PTSB share. This offer includes a 26% premium over PTSB's closing share price prior to the formal sale process announcement in late October.
PTSB, currently majority-owned by the Irish government, was put up for sale to allow the finance ministry to exit its remaining 57.5% stake. The government anticipates recouping 930.7 million euros from this sale, partially recovering funds injected in 2011.
The acquisition, recommended unanimously by PTSB's board, is expected to close in the fourth quarter of this year or the first quarter of next year. Bawag intends to maintain PTSB's Dublin headquarters and a significant branch network across Ireland.
