Bank boardroom moves after takeover

ULSTER BANK chief executive Martin Wilson will step down from his position when its takeover of First Active is completed, making way for the former building society’s chief Cormac McCarthy.

Mr Wilson will become deputy chairman of Ulster Bank after the completion of takeover of First Active by the Royal Bank of Scotland, Ulster’s parent.

Ulster Bank’s finance director Richard Houghton is also stepping aside from his role, but will continue in an executive capacity to oversee the integration of the two banks.

He will be replaced by First Active’s finance director Michael Torpey. Mr McCarthy and Mr Torpey are held in high regard within the financial community and are credited with the turnaround of First Active.

In addition, four non-executive directors of the bank will be appointed to the Ulster board.

Mr McCarthy said in a statement yesterday: “Subject to receiving all the necessary shareholder and regulatory approvals, we have an excellent opportunity ahead for us to establish the enlarged Ulster Bank Group as a formidable new force in banking and financial services in Ireland.

“Following completion, we will have a great deal to do, not just integrating our two companies but ensuring that we do not lose the momentum that both organisations have established, a challenge I very much look forward to.”

Mr Wilson added: “This proposed acquisition is excellent news for our group and following successful completion, it will be a transformational acquisition.

“I am very much looking forward to stepping into my new role as deputy chairman.

“I look forward to working with Cormac and the rest of the team as we build a major new force in financial services in Ireland.”

RBoS has offered €887 million or €6.20 per share for First Active, a 150% increase on the price the former building society floated at in 1998.

RBoS says the combination of First Active and Ulster Bank will create a highly effective challenger to the larger competitors in the Irish banking market.

First Active will hold an extraordinary general meeting on November 27 for shareholders to consider the various resolutions necessary to effect the acquisition.

The takeover has also to be approved by the High Court at a date in December.

A circular relating to the meetings was posted to shareholders yesterday.

If, as expected, it is accepted, First Active shares will be delisted from the Irish Stock Exchange on January 2, 2004.