AIB says its shareholders have voted to approve the bank's participation in the National Asset Management Agency. This follows a meeting held in Dublin this morning. The vote was 99.7% in favour.
Earlier, AIB chairman Dan O'Connor told shareholders at the EGM that the board fully accepted that many of its problems had been 'self-inflicted'.
Mr O'Connor expressed the bank's deep regret to all its shareholders for the part AIB had played in the events which led to today's EGM.
'I want to put on record our acknowledgement of, and gratitude for, the support of the Irish Government and taxpayers and the key role they have played in helping us deal with these unprecedented events,' he stated.
The AIB chairman said that participation in NAMA will provide a number of benefits to the group that should support its business and help to improve its long-term outlook. He said that taking part in NAMA will improve AIB's liquidity and funding position, reduce the levels of loans on its balance sheet as well as enabling it to determine the losses associated with the loans transferred to NAMA.
He also said that NAMA participation will help restore confidence in the bank.
The chairman told today's EGM that AIB estimates it will give land and development loans worth approximately €24.2 billion to NAMA. He said that based on the Finance Minister's guidance, consideration for those NAMA assets will be about €17 billion.
He said the acquisition by NAMA of the assets will commence in January 2010 and is targeted to be completed by July 2010.
He again warned shareholders that there can be no assurance that the discount applied to the loans will be 30%. He said this would not be known until such time as each loan has been individually valued by NAMA.
Mr O'Connor also said that AIB is currently exploring ways to boost its equity capital base through asset sales, the introduction of a strategic investor and a public share issue which may require Government support.
'Rebuilding both our business and the Irish economy will take time. It will have to be done step by step. I believe NAMA is one of the key steps in the process and I hope our participation will have your support,' Mr O'Connor said.
Shareholders angry at MD appointment
One shareholder, Dermot Carroll, said he once had an inheritance and he now had AIB shares.
Another - James Flood - said shareholders were being 'treated with contempt' and said directors were not the slightest bit sorry about events at the bank.
Participants also expressed anger over the appointment of internal candidate Colm Doherty as managing director at the bank.
But Chairman Dan O'Connor said Mr Doherty was the best man for the job. He added there would be more management changes in future.
The chairman also said that the bank would co-operate with a Government bank inquiry, but he would not say whether there should be such a probe.
AIB shares closed 9.8% higher at €1.35 in Dublin.
