Allied Irish Banks (AIB) is to sell its 50% stake in a fund administration company, set up as a joint venture between it and the Bank of New York (BNY). The stake will be sold to BNY, giving it complete control over the Dublin-based firm, called AIB/BNY Securities Services.
The company provides administrative services to funds based in Ireland, with an estimated $210 billion in assets currently being handled.
“The agreement reached today is a natural and correct strategic decision for both AIB and BNY,” says Mon O’Driscoll, head of investment banking at AIB Capital Markets, who believes that despite the success of the venture, it was time for BNY to take control AIB/BNY Securities Services was established in 1995, with the net assets of the joint venture currently at $28.8 million. The deal will see all 600 AIB employees move over to BNY.