FAI chair Barrett set to make millions from proposed Goodbody sale to AIB

Roy Barrett, FAI chairman and boss of Goodbody. Picture: Ryan Byrne/Inpho

Roy Barrett, the boss of Goodbody Stockbrokers, who was appointed chairman of the FAI this year, is on course to be paid multi-millions from a proposed sale of the brokerage he has run for almost 25 years and where he is a leading shareholder.    

AIB, which is 71%-owned by the Government, is looking to buy back Goodbody, which was sold off in the last financial crisis. 

But any transaction is likely to involve a headache for the Department of Finance because it may involve paying bonuses in the future to Goodbody staff. 

A plan to pay large incentives at AIB by the bank's previous managers was vetoed by finance minister Paschal Donohoe in recent years.  

Unsuccessful bids last year had valued Goodbody business, including the large cash amounts it holds, at €150m. Another issue in AIB completing any transaction may be that Goodbody is controlled through a company, called Ganmac, which is based in the British Virgin Isles. 

After AIB sold Goodbody almost 10 years ago, Kerry-based financial services firm Fexco emerged with a 51% stake in the broker, with the rest mostly held by a small number of senior principals at Goodbody.

Accounts show the three leading shareholders are Mr Barrett, with 77,150 shares, co-head Brian O'Kelly, who has 32,650 shares, and Stephen Donovan, who heads up the capital markets division and holds 15,850 shares.                     

Goodbody has become an attractive target after building up its business in Ireland and from a London base. It is also cash-rich after receiving proceeds from the sale of the Irish Stock Exchange three years ago.                                

Two separate Chinese bids valued Goodbody at €150m, a price tag that takes account of the large cash levels held by the firm. And, as recently as the last December, the Competition Commission approved a bid for Ganmac, the Goodbody holding company, by the Bank of China. Both bids appear to have run into the sands when the Chinese government pulled back on investing overseas.       

A senior source said rival Davy, where former AIB chief executive Bernard Byrne joined two years ago, may be interested in buying Goodbody. Mr Byrne was succeeded at the top job at AIB by Colin Hunt. Mr Hunt was a former chief economist at Goodbody.