THE DEADLINE for indicative offers for AIB’s Polish subsidiary Bank Zachodni WBK closed yesterday with Poland’s largest bank PKO Bank Polski placing a preliminary bid for the Irish bank’s stake.
Shares in Bank Zachodni WBK increased for a second day, rising by 2 per cent, as AIB prepares to shortlist bidders by the middle of next month from the initial preliminary offers received yesterday.
PKO submitted a preliminary bid, according to Polish news reports. AIB intends to close the sale of its 70 per cent stake in the bank by September or October.
A spokesman for the bank declined to comment on the sale process. AIB gained 2.2 per cent, or 2 cent, to 99 cent in trading.
The bank is selling the Polish unit, its 22.5 per cent stake in US bank MT and its UK business to raise an estimated €4 billion to €4.4 billion of the €7.4 billion demanded by the Financial Regulator to meet new capital rules.
French banks BNP Paribas and Société Générale and Sberbank of Russia are among the other banks linked to AIB’s stake in BZ WBK.
The backing of the Polish government could play a key role in PKO Bank Polski’s interest in the AIB unit if it offers a similar price to other bidders. Poland’s treasury minister Aleksander Grad said last week that the Polish government supported the bid by state-controlled PKO’s interest in the bank.
“It’s hard to believe that AIB would pick PKO if its offer is lower”, while official backing “may help PKO if the price offers are comparable,” said analyst Marcin Jablczynski, at Deutsche Bank.
Meanwhile, AIB will seek to place its stake in MT with institutional investors at a single-digit discount to the market price if merger talks between MT and Sovereign, which is owned by Spanish bank Santander, fail, sources with knowledge of the bank’s intentions confirmed. – (Additional reporting, Bloomberg)
