Sumary of Davy shareholders to share up to €605m from three-part sale:
- Bank of Ireland confirmed on Thursday that it has it has reached a deal to buy Davy’s core capital markets and wealth management businesses for an enterprise value of €440 million, with the possibility of up to €40 million of further payments from 2025, subject to the performance of the business.
- A large portion of this will come from the agreed sale, also announced on Thursday, of Davy Global Fund Management (DGFM), the company’s fund servicing and fund management arm, to Luxembourg-based peer IQ-EQ.
- Sources had previously told The Irish Times that this part of the business was worth more than €70 million.
- The cash pile will also include €19 million that Davy is set to receive from the separate sale of its 50 per cent stake in Rize ETF, a UK-based exchange traded funds business.
- Davy put itself up for sale in March in an effort to rebuild trust in the business and address concerns about former executives involved in a controversial bond deal in 2014 remaining as major shareholders.
- ” The net proceeds individual shareholders will receive from the asset sales will depend on the level of debt held by holding companies above the operating Davy business as well as individuals’ personal borrowings.
- It is understood that about a third of the business is in the hands of current employees from Davy’s 700-strong workforce.