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Irish Life sold to Canada Life for €1.3bln, state makes €40m profit


Con Gallagher

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Joined
May 25, 2010
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2,413
Did the State not put €4bn into it? Has that been recovered, with interest higher than that which the state is borrowing at?
 

Roll_On

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May 27, 2010
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17,905
If memory serves, Irish life was bailed out to the tune of 3.2bn or there abouts, smells like scamola.
 

gerhard dengler

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Feb 3, 2011
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47,554
The government forked out €1.3 billion in June 2012 for the stake in Irish Life.
http://www.finance.gov.ie/documents/exchequerstatements/2012/excheqstatjune2012.pdf (see note 6).

And today Canada Life acquired the stake for €1.3 billion.

If I recall correctly the government said at the time that they hoped that their €1.3 billion investment would accrue a substantial return :?
€40 million is not to be sneezed at but I think it's fair to say that the government was hoping to sell the stake for more.
 

tigerben

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Sep 21, 2010
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4,621
As usually we have to wait to see the small print, the PR is always for positive spin and then days later we know the deals are never as good as what first came out.
 

stopdoingstuff

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Feb 26, 2011
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22,897
So hang on....we added 1.3 billion to our deficit and now we are getting it back? I see no downside to that at all. Great news.
 

Trainwreck

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Sep 6, 2012
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26,809
Hold on a minute.

The governement has put €4 billion in total into the Irish Life and Permanent Group. The €1.3 billion mentioned was only the last instalment.


Now the government has sold of the most valuable - and always financially sound - part of the business for about €1.3 billion. So that means we still have €2.7 billlion of capital sunk in the remaining Group.

What is left now is:

100% of Permanent TSB - possibly still insolvent
30% of Allianz - worth I don't know what.


This is part of the IL&P liquiditation process and the best goes first. We have a long way to go beforte we recoup our money let alone make any profit. I believe that will be highly unlikely.
 

seabhcan

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Joined
Sep 3, 2007
Messages
14,327
Hold on a minute.

The governement has put €4 billion in total into the Irish Life and Permanent Group. The €1.3 billion mentioned was only the last instalment.


Now the government has sold of the most valuable - and always financially sound - part of the business for about €1.3 billion. So that means we still have €2.7 billlion of capital sunk in the remaining Group.

What is left now is:

100% of Permanent TSB - possibly still insolvent
30% of Allianz - worth I don't know what.


This is part of the IL&P liquiditation process and the best goes first. We have a long way to go beforte we recoup our money let alone make any profit. I believe that will be highly unlikely.
Moan moan moan. :)
 

ShoutingIsLeadership

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Joined
Jan 17, 2011
Messages
50,459
What profit was this piece of business turning over?

If by selling this now, we have foregone a regular income, is it such a good idea selling this piece of business?
 

stopdoingstuff

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Feb 26, 2011
Messages
22,897
I wonder how much in total we can realize from our total expenditure on the banks. How much would we have to realize to make a decisive dent on our overall debt? It is one thing to be angry about the decision to bail them out to begin with, but surely the priority now must be to recover as much as possible.
 

seabhcan

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Sep 3, 2007
Messages
14,327
I wonder how much in total we can realize from our total expenditure on the banks. How much would we have to realize to make a decisive dent on our overall debt? It is one thing to be angry about the decision to bail them out to begin with, but surely the priority now must be to recover as much as possible.
Optimistically, I'd say about 30%. But no one knows, of course.
 
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