The Minister for Finance will transfer the 15 per cent shareholding earmarked for ICC's 350 staff into the Employee Share Ownership Trust (ESOT) this evening, ahead of the closure of its sale to Bank of Scotland tomorrow. The Scottish bank is to pay £275 million (#349.2 million) for the State-owned bank. The 350 employees will get the equivalent of £117,000 each under the terms of the sale.
The 15 per cent stake held by the staff will be exchanged for Bank of Scotland shares worth an equivalent amount. Under the terms of the Employee Share Ownership Plan, 5 per cent of the company will be given to the ESOT and it will then buy a further 9.9 per cent which will be paid for by a loan and a cash contribution from ICC. The staff will have to wait at least four years before receiving any benefit from their shares. Mr McCreevy has stated the benefits to which they are entitled will then be distributed over the following 10 years.
The Exchequer will receive £234 million for the Government's 85 per cent shareholding in the specialist business bank.it.
A small number of shares - less than 1 per cent - are owned by private individuals and will be bought back by Bank of Scotland. The shareholders include the Ginnell family from Mullingar, Co Westmeath, which owns 460 shares and Mr Joe Davy and Mr Brian Davy of Davy Stockbrokers, who own 250 shares.
The Minister for Finance is required to accept Bank of Scotland's offer tomorrow, unless a bid worth at least 10 per cent more is lodged by another institution.
The Department of Finance has stated, however, that the share transfer will take place today indicating that no further bids have been received.
The two banks are understood to be working closely already to establish a structure to integrate their businesses, and Bank of Scotland has given an undertaking that there will be no compulsory redundancies.
ICC will operate as part of Bank of Scotland's business banking division, which is responsible for the Scottish group's existing Irish operation, the former Equity Bank, now known as Bank of Scotland (Ireland).
Mr Mark Duffy, the chief executive of Bank of Scotland (Ireland), will become chief executive of the enlarged group and Mr Phil Flynn, the chairman of ICC will be chairman. Mr Michael Quinn, the chief executive of ICC, is to step down but will remain as a non-executive director.
The takeover will give Bank of Scotland 13 per cent of the small and medium-sized business sector in the Republic.
