Permanent TSB Group Holdings PLC Sale Agreed for Non-Core UK Assets (5690N)
October 27 2016 - 2:00AM
UK Regulatory
TIDMIL0A TIDM73HR
RNS Number : 5690N
Permanent TSB Group Holdings PLC
27 October 2016
This announcement contains Inside Information as defined under
Regulation (EU) No 596/2014 of the European Parliament and of the
Council of 16 April 2014 on Market Abuse.
Statement by Permanent TSB Group Holdings plc
Permanent TSB plc (trading as Permanent TSB) is the wholly owned
retail banking subsidiary of Permanent TSB Group Holdings plc.
Headline: Permanent TSB agrees sale of GBPGBP2.29 billion of
non-core loans held by Lansdowne 199 Ltd in the United Kingdom.
Thursday 27(th) October 2016. Permanent TSB has agreed the sale
of GBPGBP2.29 billion of loans held by its UK subsidiary, Lansdowne
199 Ltd (L199). The loan assets comprise the total balance of the
residual book of the Group's former UK subsidiary, Capital Home
Loans Limited (CHL). The residual book was transferred to L199 in
July 2015 following the sale of circa 50% of the CHL loan portfolio
and the associated legal entity, CHL, to an affiliate of Cerberus
Capital Management, L.P. This transaction, once completed, means
that the Group will have successfully de-leveraged 100% of the CHL
loan portfolio, as required under the Group's Restructuring
Plan.
The acquirer of the loans is an affiliate of Cerberus Capital
Management, L.P. The Group was advised by Morgan Stanley & Co
International plc. The gross proceeds for the sale of GBPGBP2.29
billion of loan assets (RWAs of GBPGBP855 million) is circa
GBPGBP1.95 billion. Consideration is in the form of a cash
settlement and sales proceeds will be used to reduce the Group's
borrowings.
At 31 December 2015, losses attributable to the assets to be
disposed were circa GBPGBP8.9 million (circa EUR12.3 million)[1].
On completion, the transaction is estimated to have a net adverse
impact on the capital of the Group of circa GBPGBP300 million
(circa EUR333 million at current exchange rates), which takes into
account all estimated fees and costs with the completion of the
transaction. The sale is expected to close before the 31 December
2016.
Speaking today, Jeremy Masding, Group Chief Executive, said that
the sale of these assets was a significant event for the Group;
"This transaction is a milestone event for the Group. Its
completion in the coming weeks will conclude the very ambitious
deleveraging programme of some EUR8.4 billion which was set out for
the Group under the Restructuring Plan agreed with the European
authorities.
Perhaps most importantly, it will complete our pivot to the
Irish retail and SME marketplace and allow us to focus exclusively
on growing our commercial position in key segments of the market
here. That is now our overriding priority, as Ireland's only pure
domestic retail and SME bank."
Contacts
Investors and Analysts Media
Rajesh Manirajan Ray Gordon
Head of Investor Relations Gordon MRM
rajesh.manirajan@permanenttsb.ie ptsb@gordonmrm.ie
+353 1 669 5622 +353 87 241 7373
[1] The income statement impacts for L199 are based on the 2015
average rate of GBPGBP0.725/EUR. Note this takes account of the
period from L199 establishment in July 2015 to December 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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