DUBLIN, July 22 (Reuters) – Bank of Ireland agreed to buy most of Davy Stockbrokers for an enterprise value of 440 million euros ($518 million) on Thursday, four months after a record central bank fine forced Ireland’s largest stockbroker to put itself up for sale.
Bank of Ireland said it would also pay for around 125 million euros of excess cash at completion of the deal, largely comprised of the proceeds from the separately announced sale of Davy’s fund management unit and a shareholding in a Britain-based investment company to third parties.
Davy was fined 4.1 million euros by Ireland’s central bank in March for breaching market rules and was dropped as a primary dealer in Irish government bonds amid a public outcry, leading to the closure of its bond desk.
Bank of Ireland said the wealth management, capital markets and associated businesses it is acquiring will continue to trade under the Davy brand and will be led by the management team that has overseen the sales process and “has evolved significantly over recent years”.
$1 = 0.8478 euros Reporting by Padraic Halpin; Editing by Edmund Blair