UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the date of 22 February, 2008
ALLIED IRISH BANKS, public limited company
Bankcentre, Ballsbridge, Dublin 4, Republic of Ireland
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F..X... Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X...
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
For Immediate Release 22 February 2008
AIB to acquire interest in Bulgarian American Credit Bank AD
Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) has entered into an agreement to
acquire a 49.99 per cent interest in Bulgarian-American Credit Bank AD ("BACB"
or the "Company") from its majority shareholder the Bulgarian-American
Enterprise Fund ("BAEF"). BACB is a specialist provider of secured finance to
small and medium sized companies in Bulgaria. BAEF is a private U.S.
corporation established in 1991 under legislation enacted by the U.S. Congress
to promote active participation in the development and expansion of the economy
in Bulgaria.
BACB was established in 1996 and listed on the Bulgarian Stock Exchange in March
2006. Today, it is an established brand name with a strong management team and
a proven track record of profit growth. Headquartered in Sofia, Bulgaria, BACB
has four offices in key regional cities and a network of mobile lending
consultants who cover a further 15 cities. The Company has 137 employees.
AIB is Ireland's leading banking and financial services organisation. It
operates principally in Ireland, the United Kingdom, the United States and
Poland. In Poland, AIB has a 70.5% shareholding in BZWBK which has over 380
outlets mainly in the mid-west and south-west of the country. AIB also has a
24.3% stake in M&T Bank, one of the top regional banks in the US. For more
information visit www.aibgroup.com
The consideration payable by AIB is EUR216 million which shall be satisfied by
way of cash on completion of the transaction. Completion is conditional upon
receipt of the requisite regulatory approvals. The transaction is expected to be
marginally EPS accretive for AIB and will have a minimal capital impact. AIB was
advised by AIB Corporate Finance Limited and BAEF was advised by UniCredit
Markets & Investment Banking acting through CA IB Corporate Finance Limited.
Based on the unaudited consolidated financial statements released by BACB for
the year ended 31 December 2007, the Company earned a net income of EUR27
million and had total assets of EUR358 million and shareholders' equity of EUR80
million at the year end. Return on average equity was 39.7% and the
cost-to-income ratio was 15.5%. In 2007 BACB had a record year as the bank
continued to broaden and strengthen its participation in the SME sector, which
is benefiting from EU accession, continuing foreign direct investment and
accelerated structural spending. All of this has contributed to Bulgaria having
one of the best growth stories in the region. In January 2008 Standard & Poor's
affirmed the BACB's credit rating - BB/Stable/B. For five years in a row,
including 2007, BACB received Finance Central Europe's achievement award for
Best Bank in Bulgaria by return on equity and also return on assets.
Commenting on today's announcement, Frank Bauer, CEO of BACB, said that "
Bulgaria's success in large part has been fueled by the SME sector in which BACB
is a driving force. As a result of BACB's clear strategy, with its emphasis on
innovation and client service, the bank consistently has been the most
profitable bank in Bulgaria. We believe that, as a new strategic investor, AIB
will bring the same high standards of entrepreneurial and operational
excellence. The combination should benefit everyone - clients, employees,
management and shareholders - indeed, this is a great day for everyone."
Eugene Sheehy, CEO of AIB said: "This investment is part of AIB's strategy for
Central and Eastern Europe which involves acquiring and investing in businesses
at reasonable valuations in targeted high growth markets and which operate in
areas where AIB has core expertise (in this case, SME lending).
BACB represents an exciting growth opportunity for AIB and we look forward to
working with the excellent management team who have built up the business. We
believe that AIB can add significant value to the business in the future".
-ENDS-
For further information, please contact:
Alan Kelly Ronan Sheridan
General Manager, Group Finance Group Press Officer
AIB Group AIB Group
Bankcentre Bankcentre
Dublin 4 Dublin 4
Tel: +353-1-6412162 Tel: +353-1-6414651
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.
ALLIED IRISH BANKS, p.l.c.
(Registrant)
Date 22 February, 2008 By: ___________________
John O'Donnell
Group Director, Finance,
Risk and Enterprise
Technology
Allied Irish Banks, p.l.c.