Reclassifying State could 'torpedo' PTSB sale date

PTSB has told the High Court an application by a prominent shareholder to classify the State as a different type of shareholder in the bank would "torpedo" the timetable for a sale of the company to Austrian bank BAWAG.

The Minister for Finance Simon Harris is a 57.5% shareholder in PTSB and has agreed to sell the State's stake to Vienna-based BAWAG.

Scotchstone Capital, which owns less than 1% of PTSB, wants the State to be classed as a different type of shareholder to others and for the bank to hold a separate meeting for the other shareholders to approve the deal.

In the High Court today Piotr Skoczylas, a director of Scotchstone Capital, said there was a "fundamental dis-similarity" between the Minister for Finance Simon Harris and other shareholders.

Mr Skoczylas, who represented himself, said the Minister was "completely different animal" to other shareholders who he claimed were being "railroaded" into a deal to sell their shares for €2.97 each.

He said it was "absurd" to classify the Minister for Finance as the same as other shareholders.

The State became a majority shareholder in the bank following recapitalisation of the bank by the taxpayer in 2011 during the financial crisis.

In the High Court today Kelley Smith SC for PTSB said an application from Scotchstone Capital and two other shareholders would result in the bank to "simply lose the date" for the acquisition by BAWAG.

She said Mr Skoczylas was looking to be put in a "better position" by taking his application.

She said the issues raised by Mr Skoczylas could be dealt with at the single "sanction" meeting which has been scheduled for July 30.

The case was heard by Mr Justice Mark Sanfey who said it was the role of the High Court to decide if the composition of different classes of shareholders should be decided at this stage or a later date.

He said he would give judgement on the issue on Wednesday morning.