AIB sells 49.9pc stake in Bulgarian bank
Published 17/05/2011 | 05:00
AIB has sold its 49.9pc stake in the Bulgarian-American Credit Bank (BACB) to CSIF AD for an undisclosed amount.
The bank has been disposing of assets as part of its efforts to raise money for capital to meet new requirements set down by the Financial Regulator, but it said the sale would not have a material impact on its capital position.
In a statement yesterday, the bank said the completion of the deal was conditional on CSIF receiving approval from the Bulgarian regulatory authorities.
BACB is a publicly traded company based in Sofia that specialises in providing banking services to small and medium-sized businesses.
At the end of last year the bank had total assets of €375.9m and shareholders' equity of €96.6m.
AIB purchased the stake in the Bulgarian bank in 2008 for about €216m.
AIB said at that time the investment was part of its strategy for expanding its business in central and eastern Europe.
The bank then owned one of Poland's biggest banks, WBK Bank Zachodni, which it has since sold to Spanish banking giant Santander.
Yesterday, Santander an-nounced it was appointing the former head of AIB's eastern European operations, Gerry Byrne, as chief executive of its operations in Poland.