29th Jun 2007 11:08
Allied Irish Banks PLC29 June 2007 For immediate release 29th June, 2007 AIB to acquire AmCredit Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) has entered into an agreement toacquire AmCredit, the mortgage finance business of the Baltic-AmericanEnterprise Fund ("BalAEF"). The business, which has a strong track record inmortgage lending, operates in Latvia, Lithuania, and Estonia. It wasestablished in 1997. BalAEF is a Delaware corporation chartered in 1994,pursuant to legislation enacted by the U.S. Congress to promote private sectordevelopment in the Baltic States. The International Finance Corporation (theprivate sector arm of the World Bank Group) has played an important role in itsdevelopment over the years. AmCredit, which has 13 outlets and 145 staff, will give AIB entry to three highgrowth markets underpinned by an experienced workforce, robust systems andprocesses and an established brand. The consideration for the transaction, which will comprise both up-front andearn-out components, is expected to be in the order of €40m. AmCredit currently operates as a single product mortgage business. AIB willseek regulatory approval to operate through a branch in each country and in timeexpand the range of banking products sold. The transaction is subject to the completion of the requisite regulatoryapprovals. Eugene Sheehy, CEO of AIB said: "We look forward to working with AmCredit'smanagement and staff in the development of the business in the years ahead.AmCredit gives us an established foothold in the high-growth Baltic market andan opportunity to develop our business in a market contiguous to our Polishoperations. We plan to grow its business and to expand the range of bankingproducts sold into these new markets." - ENDS- For further information, please contact: Alan Kelly Ronan SheridanGeneral Manager, Group Finance Group Press OfficerAIB Group AIB GroupBankcentre BankcentreDublin 4 Dublin 4 Tel: +353-1-6412162 Tel: +353-1-6414651 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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