AIB has received a number of "substantial" bids for its Polish unit, Minister for Finance Brian Lenihan said today.
Speaking on RTÉ Radio, Mr Lenihan said the bids have now closed for control of the bank, Zachodni WBK, in which AIB has a 70 per cent stake, and that he expects "finality" on the capital needs of the bank "in the next few weeks".
AIB is seeking to sell its entire stake in Bank Zachodni as part of a series of measures aimed at raising €7.4 billion by year-end to reach new regulatory capital targets. Poland's PKO Bank Polski, Spain's Banco Santander and France's BNP Paribas bid for the Polish unit, a person briefed on the situation said on August 23rd.
Goodbody Stockbrokers currently estimates that Allied Irish will raise €1.95 billion from the sale of the Bank Zachodni stake.
"We estimate that Allied will raise a total of €4.4 billion from foreign asset sales," said Ken Darmody, an analyst with Goodbody, which has an "add" rating on the stock.
AIB also put its UK division and its 22.5 per cent stake in US lender MandT Bank up for sale at the end of March.
AIB managing director Colm Doherty said on August 4th that the bank expects to complete the disposals process of the three foreign assets by the end of September. He said he expects to sell shares in the market and to the Government in the fourth quarter.
Bloomberg