Austria bank BAWAG submits proposal to buy Permanent TSB

Sale would result in the Government exiting its 57.4% stake

Austrian bank BAWAG said on Wednesday it has submitted a non-binding proposal to acquire Irish bank Permanent TSB as part of a sales process launched last October. Picture: Andres Poveda

Austrian bank BAWAG said on Wednesday it has submitted a non-binding proposal to acquire Irish bank Permanent TSB as part of a sales process launched last October.

BAWAG said the proposal could lead to an offer but that was undecided at this stage. Earlier, PTSB said BAWAG was one of a number of parties interested in the group.

PTSB has put itself up for sale to capitalise on a rise in demand for its shares from international investors and to allow the Government to sell the last of its shares in the sector.

It is by some way the smallest of the three Irish banks that emerged from the eurozone's biggest state rescue over 15 years ago. The sale, if successful, would result in the Government exiting its 57.4% stake.

The bank said in October it had no conversations with potential buyers before launching the sale and that it expected the process to conclude in the first half of 2026.

Investors will be watching for signs of renewed interest in Ireland's highly concentrated banking sector, four years after Belgian lender KBC and British bank NatWest quit the market, and almost two decades since other foreign banks suffered big losses during Ireland's banking crash.

"The objective of the Formal Sale Process remains the same; to identify a new owner that will enable PTSB to continue building on its recent strategic and financial progress, and to support the Company in the next phase of its growth and strategic development," a statement from PTSB said on Wednesday.

"PTSB is an important part of the retail banking sector and wider Irish economy, and its continued sustainable growth is critical to ensuring competition in the market and providing choice to consumers. There is no impact to customers as a result of this announcement, and PTSB’s operations, products and services remain unaffected by the Formal Sale Process. PTSB continues to support and service customers as normal.

"A further announcement will be made at the appropriate time."

Reuters