Bank Of Ireland Sells Burdale For EUR690 Million
December 19 2011 - 6:01AM
Dow Jones News
Bank of Ireland (Governor & Co) (IRE) said Monday it has
agreed to sell Burdale to Wells Fargo Bank NA for EUR690
million.
MAIN FACTS:
-Transaction will be effected by way of a sale of Burdale
Financial Holdings Ltd., or BFHL, the U.K. entity, to Wells Fargo
International Banking Corporation, or WFIBC, and a sale by Burdale
Capital Finance Inc., or BCF, the U.S. entity, of its loan book to
Wells Fargo Bank NA.
-In the year ended Dec. 31, 2010, BFHL generated profit before
tax of GBP20.7 million; as at Dec. 31, 2010, BFHL's gross assets
amounted to GBP352 million and BCF's gross assets amounted to
GBP242 million.
-Under transaction, Bank will incur an aggregate discount of
circa GBP4.7 million on the combined net asset value of BFHL and
the net asset value of the BCF loan book at completion.
-Upon completion, WFIBC will satisfy any indebtedness owed by
BFHL to the Bank.
-Total cash proceeds will further reduce Bank's wholesale
borrowings including those from Monetary Authorities in line with
the Bank's deleveraging plan.
-Sale won't adversely impact the Group's Core Tier 1 ratio.
-Loan redemptions and repayments remain in line with
expectations and deposits have increased since Oct. 31.
-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296;
ian.walker@dowjones.com