31st Aug 2006 08:58
Allied Irish Banks PLC31 August 2006 For Immediate Release 31 August, 2006 ALLIED IRISH BANKS, P.L.C. SELLS STAKE IN AIB/BNY SECURITIES SERVICES (IRELAND) LTD Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) has today announced that it hasentered into a definitive agreement with The Bank of New York Company, Inc (BNY)for the purchase by BNY of AIB's 50% stake in AIB/BNY Securities Services(Ireland) Ltd. (AIB/BNY). The transaction, which will require regulatoryapproval, is expected to be completed by the end of the third quarter of 2006.The profit and capital impacts will not be material for AIB. AIB/BNY Securities Services (Ireland) Ltd was established in 1995 as a jointventure between AIB and BNY to provide a range of services for a number of fundstructures domiciled in Ireland. The JV, which currently has USD$210bn assets under administration, employs 600staff between its Dublin and Cork offices. The net assets of the JV as at 31stOctober 2005 were USD$28.8m. Following the purchase of AIB's stake, all currentAIB/BNY employees will join BNY and BNY will be the sole owner of the operation. Commenting on today's announcement Mon O'Driscoll, Head of Investment Banking,AIB Capital Markets said: "The agreement reached today is a natural and correct strategic decision forboth AIB and BNY. Since its formation eleven years ago, AIB/BNY SecuritiesServices (Ireland) Ltd. has grown to be one of Ireland's leading fundadministration companies. AIB's knowledge and expertise of the local market wasan excellent fit with BNY's global business model and the Joint Venture hasenjoyed considerable success. Having reached significant scale it was naturalfor both parties to strategically review the partnership and decide how best tocontinue and develop the business. Continued success in the increasingly globalcustodial and funds administration business requires the focus and expertise ofa company offering the scale and international presence of BNY. With itscommitment to Ireland as a key part of its global funds administration platformand its long and impressive track record as a leading provider of securitiesservice, BNY is ideally suited to take full control of the JV and ensure itsfurther development and success". -ENDS- For further information please contact: Alan Kelly Catherine BurkeGeneral Manager, Group Finance Head of Corporate RelationsAIB Group AIB GroupBankcentre BankcentreDublin 4 Dublin 4Tel: +353-1-6600311 ext. 12162 Tel: +353-1-6600311 ext. 13894 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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