Any news on INBS?

[Smi1er]

As title really. Any news on the proposed INBS conversion?

[Smi1er]

93 views and no comments?

[crumdub12]

Have,nt heard a thing ... and am in line for it.


Got docs yesterday from Standard Life talking about DM.

[Observer]

There was something recently in the papers about the enabling bill being scheduled in the next Dail term. After it becomes law add about 12 months minimum to allow for the legal niceties and the cheques MIGHT arrive about Christmas 2006. Or shortly after.


Call me optimistic but it ties in nicely with the expected date of the next general election - feel good factor, anyone??

[Murt10]

Totally agree.

There is nothing in it for the Govt. to introduce legislation now, so why should they.

If on the other hand they make some big move with regard to introducing legislation or maybe the cheque arrives in the build up to the election - feelgood factor, SSIA's, loads of free money. - Bingo. Vote FF

Murt

[RainyDay]

Originally Posted by Observer

There was something recently in the papers about the enabling bill being scheduled in the next Dail term.

That story seems to appear every 6 months or so.

[Observer]

Too true, Rainyday!! And it's invariably followed about 3 months later by the story that ".....due to unprecendented and unforeseen pressure on parliamentary time, the INBS Bill is now unlikely to be published this term"

But still, with an election coming up, I remain optimistic

[Rujib]

Originally Posted by Murt10

Totally agree.

There is nothing in it for the Govt. to introduce legislation now, so why should they.

If on the other hand they make some big move with regard to introducing legislation or maybe the cheque arrives in the build up to the election - feelgood factor, SSIA's, loads of free money. - Bingo. Vote FF

Murt

Why FF? Vote PD. You got Mary down on her hands and knees scrubbing all that MRSA stuff off the floors and trollies and then you got McDowell planning to turn Spike Island into a Guantanamo Bay for the Shinners.
Roll out the SSIA's and the INBS cheque and make a good contribution to the PDeeeeees.

[eamon]

what paper was that article in? I've been keeping a close eye on the Times, Biz Post and the Trib but haven't seen anything about the INBS demut since earlier this year. Could you post a link to the article? Thanks.

[Observer]

From the Business Post 1st May 2005 http://archives.tcm.ie/businesspost/.../story4438.asp

The government is expected to introduce laws this autumn that will guarantee windfalls of up to €12,000 for members of Irish Nationwide Building Society.

These payouts will follow the long-anticipated demutualisation and sale of Irish Nationwide.

Demutualisation is a process by which a company that is owned and controlled by policyholders becomes a public limited company. The company can then float on the stock market or be purchased by another company.

At last Monday's annual general meeting, Irish Nationwide reaffirmed its long-running commitment to demutualisation, to the delight of shareholders.

“The board of the society is fully committed to demutualisation,” said the company in its annual report.

“However, as we said last year, the demutualisation process must be managed in a prudent, professional and orderly manner so that we maximise the value [of demutualisation] for management, staff and members.”

1 When will the law be changed and Irish Nationwide demutualised?

After demutualisation, Irish Nationwide favours a direct sale to another institution.

However, current law prevents more than 80 per cent of a demutualised institution being sold to a single buyer for five years after its change in status.

Legislation is being drafted to remove the five-year ban.

Last September, the society received a letter from the Minister for the Environment, Dick Roche, which stated that the department was “at present involved in the drafting process with a view to finalisation of the legislation in [the] autumn'‘.

Even if the law is changed later this year, it could be at least a year before members enjoy the fruits of demutualisation. Although it could happen earlier, demutualisation is expected by autumn next year, followed by a sale towards the end of next year.

“The best-case scenario would be for demutualisation to happen in 12 months,” said Brendan Burgess, a shareholder of the building society and founder of the www.askaboutmoney.com financial website.

“The minister has indicated that the law will change this autumn, but there could be people who object to the legislation and this would delay things further.”

Although many older and retired Irish Nationwide members are anxious for a quick demutualisation, a delay could add 18 per cent a year to members' shares. Irish Nationwide's pre-tax profits rose 16 per cent last year, to €135million...........................

[eamon]

I emailed the Department of the Environment to find out when the Building Societies Bill will be published and this is the reply I just received.

A substantial amount of work has been carried out in connection with amending legislation relating to demutualisation of building societies having regard to proposals from the building societies. This work is proceeding in conjunction with the Attorney Generals Office. When finalised, the timing of the publication of legislation will be a matter for consideration by Government having regard to the needs and pressures
of the broader legislative timetable. Subject to finalisation of legal aspects, it is envisaged that proposals will be submitted to Government with a view to publication of a bill later this year. The full details of the package of proposed measures will be set out in detail upon publication of a bill.

[INBSMember]

Seems like the bill has slipped now til early '06, see Department of Taoiseach's website

http://www.taoiseach.gov.ie/index.asp?docID=289

"Publication expected - early '06"

I seem to remember it was imminent according to Aertel a couple of weeks before Christmas '03, not to mention Shane Ross's periodic articles...

Looking more and more like money around election timeframe alright...

INBSMember.

[Smi1er]

Just as well I bagged INBS for IR£100.


I'd be a bit upset if I had an account there with IR£10K or more.

[barneykx]

will IR 100 qualify for windfall last year i was told i would need to open with 20k to benefit from any windfall

[RainyDay]

Originally Posted by barneykx

will IR 100 qualify for windfall last year i was told i would need to open with 20k to benefit from any windfall

Hi Barney - It's all explained in the FAQs

I have a 15 year mortage on €50,000 - which tranlates into €450 per month. Does this mean I won't be entitled because i am below €625 (as listed).

Bit confused...

[RainyDay]

Originally Posted by seanryan

I have a 15 year mortage on €50,000 - which tranlates into €450 per month. Does this mean I won't be entitled because i am below €625 (as listed).

Bit confused...

The €625 refers to the outstanding balance, not the monthly payment.

Thanks. Wasn't sure with what I was reading. Was thinking they had set a limit in what was owed.

Hopefully this does happen (eventually).

[Observer]

and from today's business post............

The sale of Irish Nationwide Building Society, and payouts to its qualifying members, are unlikely to go ahead before 2007. Senior sources have predicted that the delay in winning parliamentary time for new legislation to reform building society ownership will scupper the prospects for a sale next year.

The Sunday Business Post understands that Irish Nationwide is seeking to start the sale process as soon as possible, but the timetable has slipped by at least six months.

Managing director Michael Fingleton has said in the past that it would not appoint advisers or encourage approaches by trade buyers until the new building society legislation is passed. The timetable and payments, and the distribution of an estimated €12,000 for its 125,000 members, will not now occur until the likely election year of 2007
The slipped deadline may help boost the value of the Irish Nationwide amid signs that the British housing market, in which Irish Nationwide is a significant commercial lender, is picking up again.

The lender's loan growth is expected to have slowed from this time last year but after-tax profit is likely to have increased significantly in 2005 nonetheless.

Earlier this year analysts predicted that Irish Nationwide could be worth as much as €1.5 billion, based on a multiple of 14 times its earnings in 2004. This would be higher than the valuation of First Active, which was sold in late 2003 for €887 million by the Royal Bank of Scotland.

Accounts for 2004 show that First Active boosted after-tax profit to €80.3million in its first year in RBS ownership. It earned €22.3 million in after-tax profit in 2003.

[eamon]

THere was an article in yesterdays Biz Post saying that the demutualisation is probably gone bak til 2007. I've got an accout that will be 2 years old in February 2006. I wonder would it be worth a flutter oping another in case this drgs on past November 2007? Any thoughts?