The amount of shares granted is equivalent to €250m based on the average share price over the past 30 days.
What about the 25% stake? I initially thought the government had taken a 25% stake in each bank but reading over the weekend it appears that it has the option of taking a stake in the event that the bank cannot pay back €3.5 billion in a few years time. Is this the case?
Yeah its just an option. They can excerise the option at anytime between year 5 and 10 from the date of the investment. I think the strike price is at about 60c per share or something.
The government are never going to sell these shares. They have effectively foregone the 250m in cash.
Hopefully NTMA will sell them in a few years, at a profit! It will take a lot longer for me to make a profit on mine!!!
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