Allied Irish Banks has sold its 50% stake in the AIB/BNY Securities Services joint venture to partner Bank of New York.
AIB/BNY Securities Services (Ireland) Ltd was established in 1995 as a joint venture between AIB and BNY to provide a range of services for a number of fund structures domiciled in Ireland.
The JV, which currently has USD$210bn assets under administration, employs 600 staff between its Dublin and Cork offices. The net assets of the JV as at 31st October 2005 were USD$28.8m. Following the purchase of AIB's stake, all current AIB/BNY employees will join BNY and BNY will be the sole owner of the operation.
Commenting on the announcement Mon O'Driscoll, head of investment banking, AIB Capital Markets says: "Having reached significant scale it was natural for both parties to strategically review the partnership and decide how best to continue and develop the business. Continued success in the increasingly global custodial and funds administration business requires the focus and expertise of a company offering the scale and international presence of BNY."