PTSB says Axis bid interest ‘highly speculative’ as it sticks to Bawag deal timeline

PTSB said that the 11^th-hour bid interest from Axis Capital is “highly speculative and conditional” as the bank confirmed on Friday that a High Court sanctioning hearing on its planned €1.62 billion takeover by Austria’s Bawag will proceed on Tuesday morning as planned.

The 57.5 per cent State-owned bank noted that four shareholders, known to include long-term dissenting investor Scotchstone Capital, led by Piotr Skoczylas, have indicated that they plan to object to the sanction of the deal, being carried out as a so-called scheme of arrangement that requires court approval.

“These shareholders have, over a prolonged period, pursued a number of unsuccessful legal proceedings” since the State effectively nationalised the bank in 2011.

“The court hearing is expected to take place over a number of days. The timing of the judgment, following the satisfaction of scheme conditions and the conclusion of the application for sanction of the scheme, will be a matter for the High Court,” it said.

The statement comes a day after Axis Capital, a corporate advisory firm cofounded by former banker Mark Duffy, said it will ask the High Court next week to delay ratifying PTSB’s takeover by Bawag by up to six weeks as it seeks to put together a potential offer for the bank.

[ Mark Duffy’s Axis to ask court to delay ratifying Bawag’s PTSB takeoverOpens in new window ]

The company said that investment bank Keefe, Bruyette & Woods (KBW) has introduced it to a “large global investment manager”, which is weighing acting as lead investor in the financing of a potential bid.

“The possible funder is evaluating acting as lead anchor investor in the financing of a possible offer, with the balance of the capital to be syndicated to its limited partners and other co-investors,” Axis said.

KBW has not been engaged by either side. Axis is advised by Berlin-based Quirin Privatbank. Duffy was the chief executive of the now-defunct Bank of Scotland (Ireland), which was closed after the 2008 crash.

“The possible funder has indicated that completing its confirmatory due diligence is essential before it can syndicate the balance of the capital to its partners and provide a formal letter of support,” Axis added.

PTSB confirms in its statement on Friday that no offer has been made by Axis. The bank “is firmly of the view that this latest announcement remains highly speculative and conditional and that no new information has been provided by Axis or its advisers that has changed that position”, it said.

The bank’s board “remains focused on delivering value and certainty to the company’s shareholders and, in accordance with its legal obligations, is continuing to work with Bawag” on completing the planned deal.

Scotchstone also signalled on October 9th that it was considering making an offer for PTSB, but has yet to say whether it has lined up necessary funding.

The chief executive of Bawag said earlier this week that the Austrian banking group was “rising above the noise” as it awaits High Court approval of its takeover of PTSB later this month.