Wednesday 23 August 2017

Davy named as one of four firms that will handle AIB stock sale

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)
Donal O'Donovan

Donal O'Donovan

Four firms, including Ireland's Davy, have been given the potentially lucrative mandate to manage the planned sale of around 25pc of AIB next year.

The Department of Finance has appointed Bank of America Merrill Lynch, Davy and Deutsche Bank as 'Global Coordinators' to assist in a potential initial public offering (IPO) of AIB, which is slated to happen next year.

It follows a tendering process that kicked off in October.

Following these appointments, both the Department of Finance, along with its independent financial advisor, Rothschild, and AIB will work to lay the ground work for the sale.

"There remains no fixed timetable for any sale at this time, as it will depend on market conditions amongst other things.

"These appointments will ensure that the State has the option to sell some of the State's shareholding in AIB during 2017 or indeed early 2018 as provided for in the Programme for a Partnership Government," Minister for Finance Michael Noonan TD said.

Shares in the small slice of AIB already on the market closed up half of 1pc at €5.0251 after the announcement. The overall Iseq index ended Friday's session up 0.37pc at 64,95.45, with Providence Resources (+19pc) the biggest mover.

Elsewhere, Britain's top share index edged higher on Friday, building on a seven-week high hit the previous day buoyed by a rally among oil stocks.

The blue-chip FTSE 100 closed 0.2pc higher at 7,011.64. The index is up 12pc so far this year.

As in Ireland, energy stocks added the biggest number of points to the index, with shares in BP (BP.L) rising 2.1pc and Royal Dutch Shell gaining 0.9pc.

The FTSE 350 oil & gas index hit its highest level since September 2014 after the price of oil rose following a global deal to reduce output.

Irish Independent

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