Allied Irish Bank deal would cut Sean Quinn’s share to 5%
Sean Quinn will be left owning as little as 5% of his Quinn Group if a proposed takeover of Quinn Insurance by Anglo Irish Bank (AIB) goes through, the Irish Post reports.
AIB will give Quinn a nominal stake of between 5% and 10% in the wider Quinn Group, but the bank would take security over all the remaining shares and group assets. AIB will buyout bondholders.
The move would give AIB more security over the Quinns’ personal borrowings from the bank, which are in the region of €3.1bn.
Borrowings of €1.2bn
Sources indicated that the Quinn Group was worth between €1.6bn and €2bn, with borrowings of €1.2bn. The proceeds from any takeover or asset sales will be taken by Anglo.
Any sale of Quinn Insurance would require a fundamental restructuring and refinancing of the wider group.