Date set for IL&P shareholders’ vote

IRISH Life & Permanent (IL&P) has named December 17 as the date for the EGM at which shareholders will formally vote on the restructuring of the group and the formation of a new holding company.

The plan — already flagged by management at the group’s annual general meeting earlier this year and again at its more recent interim results presentation — is aimed at making its banking and life/pensions divisions more independent of each other.

The move is a preliminary step towards making it easier for Permanent TSB (the group’s banking arm) to take part in any future talks about a much mooted so-called third force super mutual in Irish banking, which may also include the EBS and IrishNationwide Building Society (INBS).

The proposed new Irish Life Group Holdings would stand over the current group structure and separately own both Permanent TSB and Irish Life; but allow for shareholdings in either/both of those businesses to change on an independent basis with no repercussions for the other.

Management has already called the new setup a chance to introduce more flexibility, clarity and transparency into group affairs.

While it is thought a so-called super mutual is on the way, it is unlikely anything will materialise until the second half of next year, well after the Government has sorted out more immediate concerns involving NAMA and the country’s two main banks; AIB and Bank of Ireland.

However, any third force in the banking sector here would probably see the Government and IL&P each owning something like a 40%-45% stake in the new entity and the remainder split between EBS and INBS.

IL&P’s share price — which has performed well since first news of the restructuring plan broke — was up by 7.46% (32c), yesterday, at €4.65.