AIB Capital Update / Equity Capital Raising
(Thomson Reuters ONE) -
Allied Irish Banks, p.l.c. ("AIB") [NYSE: AIB] is making this announcement
following a review of its capital requirements by the Irish Financial Regulator
(the "Financial Regulator"). The Financial Regulator has updated its assessment
of AIB's capital requirement and has increased the amount of equity capital
required under the Prudential Capital Assessment Review ("PCAR") from ?7.4
billion to ?10.4 billion. The increased PCAR requirement for AIB has been set
following an assessment by the Financial Regulator of AIB's potential losses on
NAMA loans.
This PCAR capital requirement is to be met as follows:
? billion
- equity capital raising 5.4
- disposals and other capital generating measures 5.0
Total 10.4
Equity Capital Raising 2010
A ?5.4 billion equity capital raising will be launched during November which
will be completed before 31 December 2010. This equity capital raising will be
fully underwritten by the National Pensions Reserve Fund Commission ("NPRFC") at
a fixed price of ?0.50 per new ordinary share, which represents a discount of
approximately 9.4 per cent to the official closing price of an ordinary share on
the Irish Stock Exchange on 29 September 2010. The capital raising will be
structured as a placing and open offer and existing shareholders will be invited
to subscribe for all or part of their pro rata entitlements. New institutional
shareholders may also be permitted to subscribe for new shares under the offer.
If necessary, the NPRFC's underwriting commitment will be met through a new cash
contribution of up to ?3.7 billion for new ordinary shares from existing cash
resources of the NPRFC and by the conversion of up to ?1.7 billion of the
existing 2009 Preferences Shares held by the NPRFC. Following this conversion
of 2009 Preference Shares the NPRFC would hold ?1.8 billion of 2009 Preference
Shares.
On completion of the equity capital raising it is possible that the NPRFC will
own a significant majority stake in AIB. It is intended to structure the
transaction in a manner which optimises the ability of AIB to retain its
existing stock exchange listings, including appropriate structuring of voting
rights, (subject to agreement with the relevant exchanges) even in circumstances
where the NPRFC purchases all or substantially all of the underwritten new
ordinary shares. The mechanics of implementation will be subject to discussion
with relevant listing authorities.
It is anticipated that the existing warrants issued to the NPRFC in 2009 will be
repurchased on terms to be agreed.
The terms of the capital raising are subject to the approval, inter alia, of the
European Commission, AIB shareholders and other regulatory consents. A
prospectus will be published in due course and will provide further details in
relation to the terms of the equity capital raising, underwriting structure and
timing.
Disposals and Other Capital Generating Measures
On 10 September 2010, AIB announced the sale of it Polish interests,
representing the sale of its entire 70.36 per cent shareholding in the issued
share capital of Bank Zachodni WBK S.A. and its 50 per cent shareholding in BZ
WBK Asset Management S.A. to Banco Santander S.A. which will generate
approximately ?2.5 billion of equivalent equity tier 1 capital. In addition,
AIB is undertaking further asset disposals and considering additional capital
generating initiatives which could generate a further ?2.5 billion of capital.
Subject to the outcome of those further asset disposals and capital generating
measures, to the extent required, the remaining ?1.8 billion of 2009 Preference
Shares held by the NPRFC may be fully or partially converted into new ordinary
shares on 31 March 2011, to meet final regulatory requirements as determined by
the Financial Regulator.
Board and Management
The Minister for Finance expected that management and board changes would be
made in conjunction with the recapitalisation of the bank.
The Board has agreed with Mr. Dan O'Connor that he will step down as Executive
Chairman within the coming weeks.
The Board has also agreed with Group Managing Director Mr. Colm Doherty the
termination of his contract on existing terms. Mr Doherty will depart AIB
before the end of 2010.
The Board wishes to express their appreciation both to Mr. O'Connor and Mr.
Doherty for their contribution to the bank, especially in recent times as the
bank embarked on its recapitalisation and reorganisation.
-ENDS-
For further information please contact:
Alan Kelly Ronan Sheridan
General Manager, Corporate Services Press Officer
AIB Group AIB Group
Dublin Dublin
Tel: +353-1-6412162 Tel: +353-1-6414651
email: alan.j.kelly(at)aib.ie email: ronan.j.sheridan(at)aib.ie
None of the Minister for Finance, the Department of Finance, the Irish
Government, the National Treasury Management Agency, the National Pensions
Reserve Fund Commission or any person controlled by or controlling any such
person, or any entity or agency of or related to the State, or any director,
officer, official, employee or adviser of any such person (each such person, a
"Relevant Person") accepts any responsibility for the contents of, or makes any
representation or warranty as to the accuracy, completeness or fairness of any
information in, this announcement or any document referred to in this
announcement or any supplement or amendment thereto (each a "Document"). Each
Relevant Person expressly disclaims any liability whatsoever for any loss
howsoever arising from, or in reliance upon, the whole or any part of the
contents of any Document. No Relevant Person has authorised or will authorise
the contents of any Document, or has recommended or endorsed the merits of the
offering of securities or any other course of action contemplated by any
Document.
A circular to shareholders relating to a general meeting to be held in
connection with the placing and open offer is expected to be published and
posted to shareholders in early November 2010. A prospectus relating to the
placing and open offer is also expected to be published in early November 2010.
Application forms in connection with the capital raising will be posted with the
prospectus.
This announcement does not constitute an offer to sell, or a solicitation of an
offer to subscribe for any securities in any jurisdiction. This announcement is
not a prospectus but an advertisement and investors should not subscribe for any
securities referred to in this announcement except on the basis of the
information contained in the prospectus when published. The prospectus will give
further details of the terms of the equity capital raising, and the ordinary
shares to be offered thereunder.
[HUG#1447823]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Allied Irish Banks, p.l.c. via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 30.09.2010 - 08:28 Uhr
Sprache: Deutsch
News-ID 43430
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