Liz McManus
Question:29 Ms McManus asked the Minister for Finance the progress, if any, made to carry out the Government decision to privatise ICC; and if he will make a statement on the matter. [13851/99]
Written Answers. - State Banking Sector.
Deputies will be aware that the Government decided last year to dispose of the State's interest in ICC bank. My Department is currently fully engaged in giving effect to this decision and the preparatory work in connection with the sale is progressing with the full co-operation of the board, management and staff of the bank.
On 11 February last, following a competitive process, I appointed ABN Amro and McCann Fitzgerald to advise me in relation to the sale of my interest in the bank. My advisers are currently working closely with the bank and its advisers in preparing the necessary documentation and agreeing the appropriate procedures for the sale process.
In the context of the sale, the Government authorised me to enter into negotiations with staff on an ESOP of up to 5 per cent of the State's shareholding in return for change in the bank and on the purchase of a further 9.9 per cent stake by the staff on a current valuation basis, on the lines of arrangements agreed in Telecom Eireann. Discussions on the ESOP are ongoing and I hope these will be brought to a conclusion shortly.
As soon as all the necessary due diligence arrangements in relation to the sale process are in place, expressions of interest in acquiring the State's remaining shareholding will be sought. I would hope that this process will commence by the end of June.
The sale of ICC Bank will require the enactment of primary legislation to repeal the ICC Bank Acts, 1993 to 1997. My officials are currently engaged in reviewing the legislative requirements.
Subject to regulatory clearances, it is expected that the sale transaction will be completed in the autumn.