A GROUP of dissident shareholders in Irish Life & Permanent is attempting to force an extraordinary general meeting to challenge the proposed €4 billion recapitalisation of the group that will wipe out their investment.
The group, which is led by Malta-based investment firm Scotchstone Capital, claims to have more than 12 per cent of the group’s share capital, well in excess of the 5 per cent required to requisition an egm.
If they succeed in organising an egm, they will ask shareholders to pass five resolutions, one of which aims to stop the sale of Irish Life Assurance and another to prevent the group from issuing shares without shareholder approval.
The group is seeking to appoint an investment bank and a corporate law firm to carry out an independent review of “viable recapitalisation options” and appoint Piotr Skoczylas, managing director of Scotchstone, to the board.
For an egm to be held, shareholders supporting the requisition and the resolutions must write to the company, indicating the number of shares they hold.
IL&P, which had avoided a Government bailout, was ordered to raise €4 billion by the Central Bank last March following stress tests.
The group is selling Irish Life to raise about €1.5 billion and buying back debt to raise further cash, but it still will require about €2.5 billion from the State, pushing the group into Government control given its €24 million market value.
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