Bank of Ireland set to delist from London Stock Exchange in June

Decision is subject to shareholder approval at AGM in Dublin next month

Bank of Ireland plans to delist its shares from the London Stock Exchange in June, and will seek shareholder approval for the move at its AGM next month. Picture: Sam Boal/Rollingnews.ie

Bank of Ireland plans to delist its shares from the London Stock Exchange in June, and will seek shareholder approval for the move at its AGM next month.

The bank will hold the AGM on May 21 in Dublin. Bank of Ireland said the decision to seek a delisting was based on trading volume in the ordinary shares of the company on the London Stock Exchange, which "has been negligible relative to overall trading in the company’s shares". "As a result, the Board considers that the cost of maintaining the LSE listing is no longer in the interests of the company and its shareholders as a whole."

The bank is also listed on the Irish stock exchange. Bank of Ireland said the proposed UK delisting will not affect the continued listing of the company’s shares on the main market of Euronext Dublin.

The proposed UK delisting is subject to shareholder approval and a circular will be sent to shareholders ahead of the AGM setting out the background to and reasons for the decision. Subject to the passing of the resolution, the anticipated date for the proposed delisting is June 29.

If the Bank of Ireland deal receives shareholder approved, it will become the second Irish pillar bank to exit the London stock market this year. Permanent TSB announced earlier this week that it will be purchased by Austrian lender BAWAG Group in a €1.62bn deal, a move that will see it exit the exchange.

Bank of Ireland also announced its intention to put in place a mechanism to permit an odd-lot offer to shareholders. Under an odd-lot offer, eligible holders of 30 or fewer ordinary shares will be offered the opportunity to sell their shares to the bank at a 5% premium to the market price at that time. The odd-lot offer could be held at any time up to 18 months following the AGM and the timing will be at the discretion of the bank's directors.

"This will facilitate the disposal by eligible Odd-lot Holders of their shares at a 5% premium, without the dealing costs which would normally render such a disposal uneconomic. Shareholders will have the ability to opt out of any odd-lot offer."

Separately, Bank of Ireland announced on Thursday an increase in interest rates on its 12-month fixed-term deposit account, raising its 12-month term deposit rate by 0.4%.