Irish Life & Permanent has called a meeting next month to vote on its plans to raise €4 billion of capital by the end of July.
Under the plans, the State will end up owning 99% of Irish Life & Permanent. The extraordinary general meeting is to be held at the D4 Ballsbridge Inn Hotel in Dublin on July 20.
Shareholders will vote on proposals to issue the Minister for Finance up to €3.4 billion in ordinary shares and €400m in contingent capital notes, and to delist IL&P's shares from the Dublin and London stock markets. IL&P plans, however, to list its shares on Dublin's junior market, the ESM.
IL&P then plans to sell off its Irish business, in order to reduce the amount the taxpayer will have to inject.
IL&P said its board, having taken legal and financial advice and had talks with the State, believed the measures to be in the best interests of the company and shareholders, 'given the lack of alternative options available to raise the required capital by July 31 2011'.
It said that if shareholders did not vote in favour of the proposals, the board believed that the Minister would invoke the Credit Institutions (Stabilisation) Act 2010 to ensure that IL&P met its capital targets.
'The timing of any such intervention would be at the discretion of the Minister for Finance and the Irish High Court and therefore not within the control of the directors,' it said.
A group of IL&P shareholders had separately been calling for an EGM to vote on their proposals to change the recapitalisation programme. The shareholders, led by Malta-based investment fund Scotchstone Capital, had been seeking an extension of the July 31 deadline for the recapitalisation and the appointment of an investment bank advisor to review the process.
