AIB Group sells minority stake in AIB Merchant Services
Why we think this is good
The RNS announcement details AIB Group's sale of its 49.9% minority stake in AIB Merchant Services to its joint venture partner Fiserv. The transaction is expected to have a positive impact on AIB's capital position, with a circa 35bps increase in CET1 capital. While the sale price is not explicitly stated, the financial impact suggests it is a reasonable transaction. AIB will also maintain an ongoing relationship with AIBMS and Fiserv by referring customers. Overall, this appears to be a positive strategic move for AIB, though the lack of specific financial details limits the sentiment to 'Good'.
Key Points
- AIB Group to sell 49.9% stake in AIB Merchant Services to Fiserv
- Transaction expected to have 35bps positive impact on AIB's CET1 capital
- AIB recognised €34m income from AIBMS in 2024
- AIB will maintain relationship with AIBMS and Fiserv by referring customers
Summary
AIB Group plc has reached an agreement to sell its 49.9% minority shareholding in AIB Merchant Services (AIBMS) to its joint venture partner Fiserv, Inc. AIBMS is one of Ireland's largest payment solution providers and one of Europe's largest e-commerce acquirers. The transaction is expected to result in a circa 35bps positive impact on AIB's CET1 capital. In 2024, AIB recognised income of €34m relating to AIBMS. AIB will continue to work with AIBMS and Fiserv by referring AIB customers who require these services.