Allied Irish Banks capital reorganisation

Overview:

• Allied Irish Banks (AIB) has undertaken a capital reorganisation.
• The deal consists of a conversion of €3.5 billion of preference shares held by the Irish Government into ordinary shares; the redemption of the balance of the preference shares; a consolidation of ordinary shares; the redemption of a legacy State aid promissory note issued to EBS; and the potential issue of warrants to the Minister for Finance over up to 10% of AIB's issued share capital.
• The deal was approved in December 2015.
• The deal was done in the context of AIB repaying €1.7 billion in aid to the Irish Government.

Sam Duke - Editor