High Court allows PTSB's EGM to go ahead in July

The High Court has decided to permit an extraordinary general meeting of PTSB to proceed on July 30 which would allow shareholders vote on whether to approve a €1.6 billion takeover of the bank by Austrian group BAWAG.

A group of shareholders had requested that there should be a court hearing into whether the Minister for Finance Simon Harris should be classified differently to other shareholders.

Minister Harris holds 57.5% of PTSB shares on behalf of the State after the bank was rescued from collapse by the taxpayer bailout in 2011.

On Monday, a group of three shareholders who own less than 1% of PTSB, said that the Minister for Finance was a "different animal" to other investors.

Minister Harris has already agreed to a recommendation by the PTSB board to sell the State's stake to BAWAG. Any takeover would need the agreement of 75% or more of shareholders.

Some stockbrokers and investors have said that the takeover undervalues PTSB, but Minister Harris said he had agreed to the sale following a competitive process.

As the State has a majority shareholding it is expected investors will vote to approve the deal on July 30.

In his judgment today in the High Court, Mr Justice Mark Sanfey said the issue of the composition of shareholders could be dealt with when the courts come to decide whether to sanction the takeover of PTSB by BAWAG later this year.

The group of shareholders, who own less than 1% of PTSB, were led by Malta-based Piotr Skoczylas.

Mr Skoczylas a director of Scotchstone Capital who represented himself in court.

He is a well-known PTSB shareholder who previously took a legal challenge against the State's bailout of the bank.

Today Mr Justice Sanfey said he did not believe his decision prejudiced the position of Mr Skoczylas and other shareholders. He refused a request by Mr Skoczylas for a stay on his order.

Mr Skoczylas said he would take his case to the Court of Appeal.

In the High Court today, Kelley Smith SC - representing PTSB - said the bank "needed to get on with the job" of printing and delivering documentation to shareholders ahead of the extraordinary general meeting on July 30.

She objected to a stay being put on the High Court's order because she said Mr Skoczylas had not established grounds for an appeal.

On Monday, Ms Smith said that agreeing to a hearing regarding whether the Minister Harris should be treated differently to other shareholders would "torpedo" the timetable for the takeover to proceed.

Shares in the bank moved higher in Dublin trade today.