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AIB HAS REACHED an agreement to buy stockbrokers Goodbody in a deal worth €138 million, subject to approval by the Central Bank of Ireland and the Competition and Consumer Protection Commission.
The €138 million figure reflects an €82m enterprise value and roughly €56m excess cash on Goodbody’s balance sheet, the bank said.
The deal will see “a small number” of staff from the bank’s Corporate Institutional and Business Banking team “move across to Goodbody over time to avoid duplication”, according to a statement from AIB this afternoon.
Goodbody, which is 51% owned by Kerry-based financial services firm Fexco, manages assets of about €8 billion and employs 300 people in offices across Ireland and the UK.
The remaining 49% of the company is owned by chief executive Roy Barrett and other staff members.
Fexco originally acquired its stake in stockbrokers from AIB for a reported €24 million in 2010.
Goodbody was also the subject of a takeover bid by the Bank of China last year, which ultimately fell apart after the bank walked away citing the uncertainty caused by the pandemic.
‘Income streams’
“The acquisition is consistent with AIB’s strategy announced in December 2020 to make selective investments in order to address gaps in its overall customer offering and diversify income streams,” the bank said in a statement.
Describing the acquisition as a “landmark deal”, AIB chief executive Colin Hunt said the bank is positioning itself for expansion in Ireland and stands “ready to underpin Ireland’s economic recovery as we emerge from the COVID-19 pandemic.”
“The acquisition of Goodbody will greatly increase the group’s capacity to broaden its services to customers, while also enhancing the bank’s growth opportunities,” he said.
Hunt said that the group will “optimise synergies” between the two entities but that Goodbody “will remain as a separately regulated entity with its own brand and board.”
Minister for Finance Paschal Donohoe has described the deal as good news for the Irish economy.
“Today’s announcement by AIB a will have positive impact for the State as a whole but primarily it will ensure that Goodbody continues to have a well-capitalised owner providing opportunities for growth, which will support the wider needs of the Irish economy and businesses,” the Dublin Central TD said.
“This acquisition also represents an excellent strategic opportunity for AIB to deliver on its ambition to diversify its revenue in a low-interest-rate environment.
“For Fexco, which is an important employer in the south-west, the proceeds it receives from the transaction will help it continue to grow and innovate in the financial services sector.”
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The photo doing the rounds of Housing Minister O’Brien socializing with Developers at a FF fund raiser tells us all where priorities are. Photos don’t lie
@Jim O’Sullivan: indeed, it doesn’t make any sense that economists are deriding these new policies!!!….. Are the govt being advised by the dogs on the street? Are they taking any advice from qualified people? Or is it vested interests? ……we deserve better either way
@Jim O’Sullivan: Fianna Fail are the proverbial Leopard.
@another one? what’s going on is the semi state sec:
You better believe they’re taking advice from those with the right qualifications. “It’s a big club” as George Carlin used to say, “and you ain’t in it”
4 billion for housing and feeding Ukrainians though
Is that all, really….nah!?
Sure that’s not far off what the likes of Ronans and McNamaras et al each got away with dumping on the books after the credit crash in 08. They then got paid munzo to manage/massage their NAMA portfolios, bought back in for a song and are since back at the high rollers table with few limits and only token liability!! C’est la guerre…. actuellement!
Whataboutery at it’s finest there.
Slava the BaNAMA Free State!
@: did you think up that all by yourself or did you do some research .. parrot
@: in fairness, now that draft dodging Ukrainian men are coming (40% of 18- 24 year olds arriving are males, the majority of whom would be eligible for the draft) we’ll probably need that four billion. Also, let’s not forget the fund will also provide for those seeking international protection arriving without documents from war torn countries like the UK, Belgium, France, Germany.
@: 4 billion of tax payers money is now whataboutery
@casio shock: not whataboutery that should read
@casio shock: Comparing giving it to developers to justify it is.
@Tomasso San Roque: can you point out the German, French Belgian or UK citizens that have claimed asylum in Ireland?
@Martin Mongan: who said anything about citizens from them countries arriving clown.
@Tomasso San Roque: you did. You specifically listed those countries
And as pictures circulate today of Darragh O Brien cosying up to his big developer buddies at another classic FF golf fundraiser you realise that things really haven’t changed at all since the crash and in the case of FF they never will.
@paulgurney:
Where any/all birdies or better are vultures and all/any worried looking bankers are bogies!
Maybe we could clamp down on the widespread tax evasion by landlords. Large landlords should be tax at a far higher rate. And small cash in hand landlords with every single room in the house split into multiple bed should be find massive amounts. We’ll see how quickly landlords register. Tax is paid and tenants at least get some form of relief….. it’s not tackled because there all at it in the government
@Nathen: stand on your own two feet.
Be interesting to see the comparison of percentage of landlords claiming their tax measure vs renters claiming theirs. I’d say a lot more renters will be furnished leases all of a sudden. This is not a country to be a renter in
Yea true but they had to do something and time will tell if these policys will work. A few million into a state ran construction company and apprenticipe scheme would have been good too
@Dan Danny: how inconsiderate of you towards BAM!
@Kieran Menon: A poor ole BAM is right, will they survive another Christmas
FFG have no interest in housing other than facilitating developers and privately owned foreign investment to gouge us . We pay mor for everything from mortgages to groceries than our so called EU counterparts
There are many people renting without the RTB knowing about it, there are also long term lettings where the landlord forgets to renew the registration after five years. Mentioning RTB when applying to a rental advert is often a sure way to guarantee that someone else will get the place.
Not registering is an all round win for landlords that can pretty much deprive the tenants of all rights because it’s not a proper tenancy. If the landlord dumps properly on the street and changes locks the tenant has nowhere to go.
Another issue is that SUSI when asking a mature student for proof of independent living won’t accept a tenancy agreement, only an RTB letter.
RTB would work better if the tenant did the registering, but it’s a way of extracting money from landlords to pay swivel servants.
Nonsense graph, the ‘wealth’ is not money sitting in the bank, it’s equity people have in their homes after paying mortgages for 15-20 years. Unless you’re willing to become homeless, it’s not available. House valuations now are still lower than 2006, when house buyers had to inflate mortgages borrowed to cover the huge stamp duty being charged at the time.
If they could look at how much it costs to actually build each house and analyse the extortion profit margins that people are gaining from them which is the root of the issue of unfordable houses!
But there is a policy here. It’s to continue to pump more money into demand side measures to ensure that prices continue to go up and up as they can’t countenance a fall in asset prices. The only problem with this is that it can only go on for so long and there will be a fall eventually one way or the other. Property owners have been prioritised over those who don’t own property who have been thrown to the wolves. That’s the calculation that has been made and they are hoping it will be enough to keep the current configuration or something close to it government at the next election.
Assets like a house are not cash in hand but my house is worth 400k and my mortgage is 80k left to pay very hard to feel sorry for most house owners above a certain age, maybe late 40s onwards
have your say