LONDON, UK: Permanent TSB plc (PTSB) has materially completed the acquisition of the performing non-tracker residential mortgage business of Ulster Bank Ireland DAC.
The residential mortgage business portfolio being acquired currently comprises loans with a value of €6.2 billion. Of this, c. €5.2bn is being migrated today and the remaining c. €1bn is expected to migrate in Q2 2023 but no later than Q4 2023. As a result of the acquisition, PTSB is today welcoming approximately 56,000 residential mortgage customers connected to the c. 36,000 accounts migrating to the Group.
PTSB will honour all the existing terms and conditions of their loans and is writing to all of these customers to provide them with comprehensive information about the transfer.
The transaction has increased the size of PTSB’s mortgage book by approximately 40%.
PTSB has acquired today’s tranche of the Residential Portfolio for c. €4.8bn of cash consideration funded from internal resources and existing funding sources, in addition to the issue of 90,893,627 PTSBGH ordinary shares of €0.50 each (the “Subscription Shares”) to a subsidiary of NatWest Group plc (“NatWest”) so that they hold 16.66% of the enlarged share capital of PTSBGH as of Completion. The issued share capital of PTSBGH following the admission of the Subscription Shares will be 545,589,119Ulster Bank Ireland ordinary shares of €0.50 each.
Applications have been made for admission of the Subscription Shares to (a) the premium listing segment of the Official List of Euronext Dublin and to trading on its main market; and (b) the standard listing segment of the Official List of the Financial Conduct Authority of the United Kingdom and to trading on the London Stock Exchange plc’s main market. It is expected that admission will become effective and that dealings will commence in the Subscription Shares at 8.00 a.m. on 8 November 2022.
113 Ulster Bank employees who were assigned to the Residential Portfolio that has been acquired by the Bank have now transferred to either the Bank or its service partner (Pepper Finance Corporation (Ireland) DAC) under the Transfer of Undertakings Regulations or terms agreed between the Bank and the employees concerned.
Approximately 230 additional Ulster Bank employees who are wholly or mainly assigned to the branches, the SME and Asset Finance businesses that are being acquired will be entitled to transfer to PTSB under the Transfer of Undertakings regulations. The final number of employees transferring will be confirmed as this element of the Transaction completes.