Government and NatWest to sell shares in PTSB

Permanent TSB CEO Eamonn Crowley and chief financial officer Nicola O'Brien

The Government and Ulster Bank owner NatWest are planning to sell a combined 6pc stake in Permanent TSB.

NatWest became a shareholder in the Irish majority State-owned bank this year as part of the sale of the bulk of Ulster Bank’s retail business to its smaller Irish rivals. The rapid exit from part of that stake is a strong indication it does not see itself as a long-term investor.

The Government has been the bank’s biggest shareholder since it was bailed out more than an decade ago. It will remain the majority shareholder after the planned stake sale but the sale is the first time the taxpayers’ stake in the bank has been reduced since a partial stock market listing in 2015.

Permanent TSB shares have been among the best performing on the Irish stock market over the past year – up roughly 50pc in the past 12 months as investors welcomed its growth through the acquisition of Ulster Bank’s mortgages and other business and the boost from rising interest rates.

The bank’s management is headed by CEO Eamonn Crowley and chief financial officer Nicola O’Brien.

The small State-owned stake being sold now will have little impact on the public finances – at current prices 3pc of the bank is worth around €36m.

NatWest announced the news in a stock market notice on Thursday evening.

It said the intention is to sell part of its shareholding in Permanent TSB Group concurrently with Finance Minister Michael McGrath.

The disposal of these shares will be by way of a placing to institutional investors. The price will be determined by way of an accelerated book-building process.

The total placing is expected to comprise approximately 6pc of the issued ordinary capital of PTSB, with the minister and NatWest each expected to dispose of a 3pc stake.

The Government’s stake will be cut to 59.4pc and NatWest’s shareholding in PTSB will be reduced to 13.6pc.

While the sale by shareholders is outside the bank’s remit, it welcomed the news.

“Permanent TSB welcomes the announcement this evening of the intention of the Minister for Finance and NatWest to sell a portion of their holdings of the bank reflecting the strong progress made by the bank in recent years,’ it said.