The Irish arm of security systems giant Tyco International has received High Court permission to reduce its capital by $17.74 billion (€14.77 billion).
The development follows the relocation of the group’s global headquarters to Cork from Schaffhausen in Switzerland, which came only six years after Tyco almost closed its Cork operation.
The capital reduction was one step in a complex chain to relocate the headquarters, which was executed by way of a merger of Tyco’s Swiss and Irish operations.
The order was issued by Mr Justice Brian McGovern on December 18th but was not previously reported.The €17.74 billion was transferred to the distributable reserve account of Tyco International plc from its share premium account.
Tyco’s US spokesman had no comment, but he cited a filing to the US Securities & Exchange Commission.
It said: “Until the Irish High Court approval is obtained or distributable reserves are created as a result of the profitable operation of Tyco Ireland, Tyco Ireland will not have sufficient distributable reserves to pay dividends or to repurchase or redeem its ordinary shares following the merger, including under the current share repurchase plans of Tyco Switzerland, until such time as Tyco Ireland has created distributable reserves through the generation of future profits from its operations.”
