The sale of the 63.6 million shares to institutional investors was completed by way of an accelerated book build following the close of the markets yesterday. The sales price was €1.98, which would have been a 5.4pc discount on the closing price of €2.09.
NatWest, which raised €126m from the sale, originally acquired a 16.66pc stake of PTSB in November 2022 as part of the Irish bank’s complicated acquisition of the retail business of Ulster Bank. The State still holds a 57.4pc stake in the bank.
The British banking giant and the Minister for Finance entered into a shareholder co-operation agreement in late 2022. The following June, the State and NatWest disposed of a cumulative 10pc stake in the bank, a legacy from the financial crash when it bailed out the Irish banking sector.
As part of the co-operation agreement, the Minister for Finance was offered an opportunity to participate in last night’s sale, but chose not to do so. The minister also committed to a 90-day lock-up period on the State’s shareholding.
After the recent sale of the State’s remaining stake in AIB, the Department of Finance said it would assess opportunities for the disposal of shares in PTSB as they arose. Paschal Donohoe, the finance minister, also removed the salary cap that had been in place in both AIB and PTSB.
Eamonn Crowley, the ceo of PTSB, welcomed the decision by NatWest. “This marks another important step towards normalising the composition of our shareholder base and creating further liquidity in the bank’s shares,” he said. “It also demonstrates that there is a strong market appetite to invest in PTSB, and confidence in our strategic direction to deliver real and sustainable value for our shareholders.”
Denis McGoldrick, an analyst with Goodbody, said: “We had flagged in early May that it was likely NatWest would look to reduce its holding in PTSB in the near future given the return of its Ulster Bank licence to the Central Bank of Ireland was imminent, that PTSB’s share price had recovered to above the ‘break even’ point for NatWest, and that an exit would close out its last remaining interest in the Irish banking market.
“From a PTSB perspective, we view the news as a positive development which should also see a positive share price reaction. The exit of a material holder will significantly improve liquidity in the stock which currently has an average daily trading volume, over the last 30 days, of just 300,000 shares.”
Ulster Bank returned its licence to the Central Bank at the end of June, ending a 165-year history of banking in Ireland.
Davy also said that the sale by NatWest removes and overhang on the stock, and should improve its liquidity. “PTSB is well positioned due to a range of initiatives, including operational and capital efficiency measures currently underway, to increase profitability and return and resume distributions to shareholders,” it said.
PTSB’s share price was down almost 2pc in early trading on the Irish stock exchange.
Yesterday it emerged that staff at the bank will be getting a 4pc pay increase, after an agreement was reached between management and trade unions following lengthy negotiations.
source