EBS HAS extended the deadline for offers for the purchase of the building society for the second time. Final bids for the building society had been due yesterday, but the deadline has been extended to August 20th.
It is understood that bidders requested more details from the building society relating to the pricing of any prospective deal.
The Minister for Finance said last month that it was envisaged the process would be finalised by the end of August. It is believed that a preferred bidder will be selected by that date and that no further expressions of interest will be received. The EBS is being advised by a team from NCB Stockbrokers and accountancy firm KPMG. The NTMA is also closely involved with EBS in the process.
The 75-year-old mutual society has been seeking investors since March. Initially July 2nd was set as a deadline for prospective offers. This was subsequently extended to August 9th and, yesterday, to August 20th.
Four interested parties are submitting detailed proposals. These are US private equity firm JC Flowers, British private equity firm Doughty Hanson, which owns TV3, and Cardinal Asset Management, which is backed by Carlyle Group. Irish Life Permanent, whose banking arm, Permanent TSB is facing funding issues, is the fourth interested party.
EBS requires €785 million to meet the Financial Regulator’s new capital rules after a €90 million debt buyback reduced the original target of €875 million.
The Government has injected €350 million – €100 million in cash and €250 million in promissory notes or IOUs – but EBS still has a shortfall of €435 million.
The Government, which has committed itself to providing the shortfall if private investment is not forthcoming, has strongly indicated that it would welcome private investment.
JC Flowers, which specialises in investments in the financial services sectors, has a history of investing in distressed financial institutions.
The EBS is expected to transfer about €1 billion in development and property loans into the National Asset Management Agency (Nama).
