FBD buys back KBC shareholding

FBD Holdings today said it participated by way of buy-back in today’s placing on the market by KBC of its entire 22.1% shareholding in FBD.

Of the 9.3 million shares placed by KBC, FBD has purchased 4.2 million, the maximum allowable, representing 10% of the issued capital in the company.

FBD decided on the buy-back in the light of the purchase price and the positive impact the buy-back will have on earnings per share. This is estimated to deliver a 5% increase in EPS in 2005.

Of the 4.2 million shares bought back by the Company, 2.7 million will be cancelled and 1.5 million will be held as treasury shares to meet outstanding share options as they come to be exercised.

Philip Fitzsimons, FBD chief executive, stated: "KBC (formerly ABB) was one of the founding shareholders in the FBD Group back in 1970.

"KBC’s decision to sell their shareholding had been advised to FBD. It followed a strategy review by KBC which placed the focus of their development plans on growing their insurance and bank assurance business in Eastern Europe.

"In addition, they had also determined that holding a majority stake in any venture they were engaged with was a key strategic matter for them. In the context of FBD, they did not see the possibility of achieving this in the short to medium term and consequently decided to sell their stake.

"FBD acknowledges the supportive role KBC has played in its progress, particularly in its formative years."