Hearing on Sale of Davy to Bank of Ireland Adjourned by Court

BoI, Bank of Ireland, made headlines in 2021 when it acquired Davy, a prominent financial services firm, for the substantial amount of €427 million. However, the acquisition has hit a roadblock as a company representing Amber Note Unlimited Co, the parent firm of Davy, claims that BoI has failed to make a post-completion payment that was due in January of this year.

Ailmount Investments Ltd, acting on behalf of 722 investors, is taking legal action against Bank of Ireland Nominee 1 Ltd and the Governor and Company of BoI, the guarantor of the payment. They filed the case in the Commercial Court, and it has been scheduled for December. Despite extensive efforts to resolve the dispute, no agreement has been reached.

In an affidavit submitted to the court, Brian McKiernan, chairperson of Ailmount, stated that under the share purchase agreement between Davy and BoI, the purchase price was divided into multiple payments, including a post-completion payment. However, this payment, which should have been made in January, was not fulfilled. BoI’s solicitors later claimed that the 2022 capital requirement reduction was “nil”, causing further disagreement.

While BoI expressed its intention to honor the spirit of the agreement, they insisted on reformulating the basis for any reduction in the consolidated capital resources requirement. Ailmount’s attempts to resolve the issue were met with uncertainty and an attempt to renegotiate the terms of the share purchase agreement.

Ailmount made it clear that this is an impermissible attempt to renegotiate the terms and is now seeking legal recourse to ensure BoI fulfills its obligations. The defendants, on the other hand, deny the claims made against them.