A consortium of unidentified investors plan to invest up to €1.123bn to acquire a large stake in Bank of Ireland, which would help the embattled Irish lender escape majority state ownership.

According to the deal, the State has agreed to sell 4.2bn shares, representing approximately 14% stake in the bank. The State will sell 2.4bn shares after the completion of a rights issue and a another 1.8bn shares upon obtaining regulatory approval.

Furthermore, these investors and fund managers can purchase 7bn units, upon receiving regulatory nod, adding an additional 23.3% stake in the Bank of Ireland.

Depending on the rights issue, the investors' maximum combined stockholding in the bank will be between 14% and 37%, while the State's stockholding will fall between 15% and 32%.

The Irish taxpayers own 36% of the bank, while four of Ireland's lenders have been nationalised, including one of its largest banks, Allied Irish Banks.

Bank of Ireland said, "The Bank is very pleased to see this major endorsement of the Bank's strategy and the confidence which these investors share with the Bank in the future for the Irish economy."

AR

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