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ISEQ steady-New Ireland for sale

Monday, February 04 09:21:54

The ISEQ is steady this morning at 3,577 as European markets hold firm as Growth indicators from the US and China remain positive.

Bank of Ireland is looking at the sale of New Ireland and Goodbody Stockbrokers comments:

Press reports over the weekend indicate that Bank of Ireland (BOI) is advancing preparations for the sale of New Ireland, its life and pension's subsidiary which must be sold by the end of 2013 under the terms of its restructuring plan agreed with the EU in 2010.

Morgan Stanley and IBI have been mandated to manage the sales process with the reports indicating the opening of a virtual data-room and information memorandum in the pipeline. The reports indicate, however, that the sales process is unlikely until H213 with Standard Life a front runner.

The Irish Life sale process now appears to be approaching completion, with much speculation of a disposal by the State to Great Western (Canada Life) before end February. The completion of the Irish Life process will be helpful for the timing of the New Ireland sale process.

We estimate that New Ireland will be sold on a net asset value of 0.7-0.8x embedded value. The sale of Irish Life is expected to complete at c.0.75x embedded value which would imply no change to our capital estimates according to Goodbody Stockbrokers.