Sale of State Assets (22 February 2012)

The Irish Minister for Public Expenditure and Reform has this morning issued a press release in relation to the State asset disposal programme to which the Irish Government has committed under the EU/IMF Irish financial support package. A link to the announcement can be found here.

 The key features are:

• Agreement with the EU/IMF for a sale of assets up to a value of €3bn, based on a 'no fire sale' principle
• Pursuit of a sale of Bord Gáis Energy (gas networks and interconnectors remaining in State ownership)
• Decision not to proceed with a sale of a minority stake in the Electricity Supply Board (ESB). A commitment to the retention of ESB as a vertically integrated utility in State ownership
• Sale of some of ESB's non-strategic power generation capacity
• Consideration of the sale of some of Coillte's (state forestry company) assets (excluding the sale of land) when market conditions are favourable
• Sale of the State's remaining (25%) shareholding in Aer Lingus (airline operator) when market conditions are favourable

Timeline according to the Government Press Release:

• End March 2012 - Identification of regulatory, legislative or financial issues which may need to be addressed prior to disposal
• End 2012 - Identified regulatory, legislative or financial issues to be addressed
• 2013 - Commencement of transactions
   

The EU/IMF has agreed that one third of the proceeds may be used for re-investment into the economy.

Further Information

For further advice and information, please contact your usual A&L Goodbody Partner or any of the following:

Ross Moore, Energy & Projects, T: +353 1 649 2117, E: rmoore@algoodbody.com

Kevin Feeney, Energy & Projects, T: +353 1 649 2241, E: kfeeney@algoodbody.com

Mark Ward, Corporate and M&A, T: +353 1 649 2208, E: mward@algoodbody.com

Paul White, Corporate and M&A, T: +353 1 649 2312, E: pwhite@algoodbody.com

Cian McCourt, Head of New York Office, T: +1 (212) 582 4499, E: cmccourt@algoodbody.com

Julian Yarr, Managing Partner, T: +353 1 649 2455, E: jyarr@algoodbody.com

Date published: 22 February 2012