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FFH 's holding in Bank of Ireland is now worth...


nwoodman
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  • 4 months later...

Speculation about profitability

Speculation about dividend.

And probably some retail investors confused about the split ...

Relative to AIB it is dirt cheap even though the former is nationalized.

Ireland real estate up a lot lately

Ire the only private bank in ireland and does fifty percent of business in UK

 

So with all that I did let go some of my positions last week... And of course as soon as I sold it went up 25%... From 16 to 21 :(

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Speculation about profitability

Speculation about dividend.

And probably some retail investors confused about the split ...

Relative to AIB it is dirt cheap even though the former is nationalized.

Ireland real estate up a lot lately

Ire the only private bank in ireland and does fifty percent of business in UK

 

So with all that I did let go some of my positions last week... And of course as soon as I sold it went up 25%... From 16 to 21 :(

 

Thanks for the comments - when you say they do 50% of biz in UK - do you mean outside of Ireland?

Also, sounds like they will have a quasi-monopoly in Ireland, when and if that economy turns around?

 

 

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I'm not really sure. I just read a bit part of revenue is from the UK...  I'm not into numbers... just thought the story was good. 

 

There are competitors. Allied Irish Bank. And also an arm of royal bank of Scotland. Forgot the name.... but not having a government assigned bureaucrat on the board is in my view a good thing. RBS is doing very bad right now. If, IF, they have to sell their Irish asset, then this story could become a lot more interesting. 

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Guest glavacem

Does anyone know how much they originally put into this investment?

 

Also where does one look to find out what it is worth?

 

Thank you kindly,

 

Mike

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I believe they hold 2,807,463,858 shares and purchased them for 0.1 Euro's each

 

http://www.bankofireland.com/fs/doc/publications/market-news-and-analysis/tr1-notification-fairfax-12-12-13.pdf

 

 

http://www.lse.co.uk/SharePrice.asp?shareprice=BKIR&share=bank_ireland

 

I would advise steering clear of the LSE chat group as there is a lot of day trading whackiness and aspirational pricing going on ;)

 

Cheers

 

nwoodman

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BN) Billionaire Ross to Sell Part of Stake in Bank of Ireland

 

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Billionaire Ross to Sell Part of Stake in Bank of Ireland

2014-03-04 08:08:31.841 GMT

 

 

By Dara Doyle

    March 4 (Bloomberg) -- Wilbur Ross, the U.S. billionaire investor in struggling industries, is selling a portion of his stake in Bank of Ireland Plc, after the value of his investment more than trebled. The bank’s shares fell in Dublin trading.

    Deutsche Bank AG said in an e-mail today it’s acting as a placing agent of “an accelerated bookbuilding to institutional investors” of about 2 billion Bank of Ireland shares on behalf of Wilbur Ross and Fairfax Financial Holdings Ltd. That’s 6.4 percent of the Dublin-based bank, Deutsche Bank said. Davy, Ireland’s largest securities firm, is also placing the shares.

    “Given the appreciation in the bank’s share price and its current premium valuation, we are not surprised to see some of the original North American anchor investors move to take some cash off the table,” said Ciaran Callaghan, an analyst at Dublin-based Merrion Capital. “In some sense, they have done their job and made their return.

    In 2011, WL Ross & Co. was part of a group of investors that paid about 1.1 euros ($1.5 billion) for a 34.9 percent stake in the lender. The invetsors paid 10 cent a share. The lender lost 490 million euros last year, its loss narrowing 73 percent from a year earlier. Bank of Ireland is now trading profitably and generating capital, Chief Executive Officer Richie Boucher said yesterday.

    Bank of Ireland dropped 4.9 percent to 34 euro cents as of

8:02 a.m. in Dublin trading.

    Pat Farrell, a spokesman for the bank, declined to comment on any sale of shares.

 

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thanks -  so they are cutting down their initial 34% by 6% ...  considering how much the Euro has appreciated seems like they are just getting part of their initial investment back

 

so the ADRs pre-market are at $20 or about 0.365 euro / share  whereas the actual IRE shares in London are now 0.34.  interesting.

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