AIB to sell trust arm in Jersey for €14.3m

AIB IS to sell the bank’s trust business in Jersey to the financial services group Capital for £12.5 million (€14.3 million) as part of the reduction in size of the almost fully nationalised bank.

The deal follows the announcement earlier this week that the bank is selling its outsourcing operation AIB International Financial Services to Capita for £29 million.

Meanwhile, AIB said yesterday that it plans to delist its American Depositary Shares from the New York Stock Exchange later this month after the State increased its shareholding to 99.8 per cent.

The bank plans to lodge filings to delist the shares in New York “on or about” Thursday, August 25th.

An AIB spokesman was unable to say what would happen to the holders of the shares, which each represent 10 ordinary AIB shares.

The holders would be contacted “in due course with further information, including with regard to any further action to be taken”.

AIB delisted from the main stock exchanges in Dublin and London last January after the Government injected a further €3.7 billion into the bank pushing its shareholding to more than 90 per cent.

The bank listed on the junior Dublin exchange, the Enterprise Securities Market, at that time.

AIB JerseyTrust provides trust services to private and corporate clients. It made an operating profit of £2 million (€2.2 million) in 2010. The business employs about 160 staff in Jersey and a further 150 in London, Dublin, the Netherlands and Luxembourg.

The deal is subject to approval by the Jersey Financial Services Commission and the Jersey Competition Regulatory Authority.

Headquartered in London and listed on the London Stock Exchange, Capita is the UK’s biggest outsourcing company.

“The acquisition is a natural fit for Capita, in terms of our client base, client services and professional staff,” said Capita chief executive Paul Pindar.