AIB Sells Polish Assets to Banco Santander for 3.1 Billion Euros

Allied Irish Banks (AIB) agreed to sell its assets in Poland, including its stake in Bank Zachodni WBK SA, to Banco Santander SA (STD) for 3.09 billion euros ($3.93 billion), following up on its efforts stated in March to raise capital to meet capital requirements from Irish regulators.

AIB will sell its 70% stake in Bank Zachodni, Poland's third-largest bank, as well as its shares in affiliates BZWBK AIB Asset Management SA and BZWBK AIB AM, AIB said in a statement earlier today. The acquisition is subject to shareholder approval.

AIB said in March that it would sell some assets before the end of the year in order to raise capital to meet requirements from Irish regulators. As part of that effort, the bank hired Morgan Stanley (MS) to help it sell Bank Zachodni as well as some other entities.

AIB has had Polish investments since 1995, which it bought interest in Wielkopolski Bank Kredytowy SA. That bank merged with Bank Zachodni SA in 2001.

AIB shares were up 7.2% to $2.09 in New York Stock Exchange trading at 3:50pm Eastern time today. Banco Santander shares were up 1.1% to $12.62.