Around the time of its sale, approximately 30 current and former executives of Davy, through their Ailmount Investments vehicle, held the largest shareholding in the company. Recently, Ailmount Investments, represented by Dentons Solicitors, has initiated legal action against two Bank of Ireland units, as revealed in papers filed with the High Court. The sale of Davy to Bank of Ireland amounted to €440 million, with an additional €125 million in cash to be generated from the sale of Davy’s funds business. The bank valued the deal at €427 million, taking into account cash on the balance sheet. The transaction was completed in 2022, with 75% of the sale price released initially. The remaining amount is scheduled to be paid in 2024, subject to the business’s performance and the management of potential risks or legal issues. This aspect appears to be the focal point of the ongoing dispute. Ailmount, the former shareholder, is reportedly suing for owed payments. Notably, the directors of Ailmount include prominent figures associated with Davy, such as former CEO Brian McKiernan, ex deputy chairman Kyran McLaughlin, Pat Cooney, the head of private clients at Davy, and former head of equities David Smith. Ailmount agreed to sell the business to Bank of Ireland following the Davy bond trading scandal, where Davy was fined by the Central Bank for violating conflict of interest rules in a significant bond transaction and subsequently removed as a primary dealer in Irish government bonds by the Irish state. Brian McKiernan, who served as the CEO of Davy Group from 2015 until 2021, is believed to have held the largest stake in the company at 13%, along with other senior figures. He, along with several other executives, resigned from their positions after the Central Bank imposed a €4.13 million fine on Davy, which amounted to one-eighth of their 2020 profits, for breaching conflict of interest rules in a major bond transaction. This misconduct involved selling €27 million of Anglo Irish Bank bonds at a heavily discounted price on behalf of Patrick Kearney, a Belfast businessman, to a consortium of Davy executives. The Davy staff then sold the assets at a much higher price. It is important to note that on this day, July 18th, notable events have taken place throughout history.
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