AIB Agrees to Sell its Polish Interests for EUR3.1 billion

The Board of Directors of Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) today announces that it has agreed to sell its interests in Poland for a total consideration of approximately EUR3.1 billion.

This represents the sale of its entire shareholding in Bank Zachodni WBK S.A. ("BZWBK"), comprising 51,413,790 shares, representing approximately 70.36% of BZWBK's issued share capital, and its 50% shareholding in BZWBK AIB Asset Management S.A. ("BZWBK AIB A.M.") to Banco Santander S.A. ("Santander") (the "Proposed Disposal").

The price that Santander has agreed to pay AIB for its shares in BZWBK is PLN11.67 billion (or approximately EUR2.9 billion*). Santander has also agreed to pay EUR150 million for AIB's stake in BZWBK AIB A.M. and therefore AIB will realise total proceeds from the sales of these assets of EUR3,088 million.

The acquisition will be carried out through a public tender offer for 100% of the capital of BZ WBK addressed to all shareholders, in which AIB will tender all of its shares.

Completion of the Proposed Disposal is subject to obtaining certain regulatory approvals and obtaining AIB shareholder approval. The sale of AIB's shares in BZWBK is not conditional on acceptance of the tender offer by other BZWBK shareholders.

Find the latest business news at FOX Business