PTSB shareholders vote by 91% to sell the bank to Austrian group

One shareholder complained that they believed the share sale price was "too cheap"

Sat Shah, Deputy CEO of Bawag Group with Eamonn Crowley, CEO of PTSB. Picture: Chris Bellew/Fennell

Shareholders in PTSB have agreed to sell the bank to the Austrian banking group BAWAG for €1.6bn following a meeting in Dublin on Thursday which saw over 91% approve the deal.

The finalisation of the deal is still subject to regulatory and court approval. It is expected that the court hearing will be held during the final quarter of this year.

A formal sale process of the bank was launched in October last year and in April the board accepted the acquisition offer by BAWAG in an all cash offer to acquire the entire share capital of PTSB.

The move was backed by finance minister Simon Harris. The Government still holds 57.5% of the company.

The purchase price is for €2.97 per share, a 26% premium on the bank's share price, resulting in an overall price tag of €1.6bn. The State is expected to receive around €931m from the sale of proceeds for the State.

Speaking at the meeting, chair of PTSB Julie O’Neill told shareholders that the BAWAG deal is the best offer the bank had received and the only offer on the table to be voted on.

She said that while some may be concerned that there is value being left on the table “the fact is that the only deliverable value is what the market is willing to pay”.

“The offer before you today is the highest deliverable offer.” Ms O'Neill said the BAWAG deal is the "best value for shareholders" and the financial terms "are compelling" providing a "meaningful premium of 93% to the share price of €1.54 on April 14 2025.

There has been criticism of the final sale price of the company with some shareholders voicing their concern in the room.

One shareholder complained that they believed the share sale prices was "too cheap" and questioned why the board is selling the company for so little.

Ms O'Neill responded by saying they ran a thorough sale process and the determination was made by the board it was the "right time" to move. She reiterated that this was the best price on offer.

She added that "while we'd all like to see a higher price" the current sale price is the one the market was willing to offer.

Chief executive of PTSB Eamonn Crowley added that even after the BAWAG offer came in, other bidders could have come in and made an offer for the bank but "the market wasn't there".

Speaking to media after the vote, Mr Crowley said the final result of the vote is “compelling” and there will always be shareholders who would have wanted more from the deal.

In response to criticism over the final share price, Mr Crowley said he can understand when they look at international bank value "but if you look at the actual multiple we achieved, a 14.4 times price earnings on this deal, which is quite strong”.

"The key message is we undertook a full public auction process and we got the best price.” With this vote, the Government moves closer to fully exiting its shareholdings in the three pillar banks it rescued following the financial crisis.

The Government finalised its divestment in AIB in the summer of last year when the bank's shareholders voted to buy back the State's remaining 2% in the bank. The State fully divested from Bank of Ireland in 2022.

Mr Harris said that he was “pleased” that shareholder approval for the deal has been secured.

“Adding BAWAG’s demonstrated deep knowledge of the European and Irish banking sector can propel PTSB to an even more competitive position in the market, with the benefits of this to be seen by Irish consumers, businesses, and the Irish economy more generally,” he said.

“The Government believes that it is in the long-term interests of PTSB and citizens in general that the Bank be returned to full private ownership and begin this next phase of growth.”