AIB agrees to sell Polish interests
Published 10/09/2010 | 18:12
Allied Irish Banks (AIB) has confirmed it has agreed to sell its Polish interests for 3.1 billion euro.
AIB group managing director Colm Doherty said he was pleased with the price achieved for its 70% stake in Poland's Bank Zachodni WBK to Spanish bank Santander.
"This sale will generate significant capital for AIB and represents the first step of our recapitalisation plan that was set out in March," said Mr Doherty.
AIB is one of the six banks guaranteed by the State.
The sale is part of its overall restructuring plan, which is aimed at raising 7.4 billion euro to meet targets set by the Financial Regulator.
The bank confirmed 2.5 billion euro of the proceeds from the sale would go towards meeting that target. The cash proceeds will be used as an additional source of liquidity to support AIB's business activities.
Mr Doherty said the bank's board believes the sale was in the best interests of AIB and unanimously recommends that shareholders vote in favour of the proposed disposal.
"We continue to make good progress on other elements of the recapitalisation plan and will make further announcements in due course," he added.
AIB confirmed a break fee of 7.5 million euro will be paid to Santander if AIB shareholders do not approve the sale at an extraordinary general meeting.
Elsewhere, AIB is also in the process of selling its 22% stake in US regional bank M&T, and its bank branches in the UK.