AIB HAS sold its investment management division to Prescient Holdings, a South African financial services group. The sale price was not disclosed. However, it is understood that Prescient paid between €25 million and €30 million.

In a statement to the Irish Stock Exchange, the bank said the positive impact on AIB Group’s capital position as a result of the transaction was “not material”.

AIB Investment Managers will be renamed Prescient Investment Managers (Ireland) Limited once the sale is concluded, which is expected to take place in the first quarter of next year. The bank anticipates that regulatory approval for the sale will be straightforward. AIBIM, which was first established in 1966, employs around 100 people and has offices in Dublin and New York. As of September 2011, it managed assets of €8.5 billion for private, corporate, pension and charity clients.

The division was identified as a non-core asset to be sold as part of the State-owned bank’s recapitalisation and restructuring agreement with the Government and the EU.

Irish Life was chosen as the preferred bidder in February and was expected to pay €15-€20 million for the unit, but pulled out of the running in April.

It is understood several new bids were submitted, with AIB entering exclusive talks with Prescient in October.