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THE STATE HAS announced it will sell 5% of its shares in AIB, taking its stake from 45.8% to 40.8%.
An initial 71% holding in AIB was built up after the state rescued the bank, following the 2008 financial crisis. Towards the end of 2021, then-finance minister Paschal Donohoe said most of the shares will be sold over a number of disposals.
Today, finance minister Michael McGrath announced the intention of the state to sell 131 million shares in the bank, worth 5% of its holding.
In June, another 5% disposal led to the state’s stake in the company falling below 50% for the first time since the financial crash in 2008.
As is protocol, the Minister will not arrange for the sale of any further AIB shares for another 90 days.
The state will sell off these shares through “a placing” – the sale of securities to a group of institutional investors, which is expected to raise close to €500 million, based on prices at the time of publishing.
The scheme to sell off these shares was announced in December 2021, with it being extended three times since.
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500 million should pay the Hotel bills for a few months.
@Gerard Carey: no need to comment. i ll be deleted in no time
@calimero242: would it not make commen sence too hold on to the stake the government/state has im the bank instead of letting them off the leash again to bring the country to its knees…. after all they couldn’t be trusted the first time to manage the money what has changed this time….
@and the hit’s just keep coming: nothing sickening about it. More people paying tax =
Higher tax receipts
@and the hit’s just keep coming: sorry I responded in the wrong thread
@Gerard Carey: That’s a very expensive hotel you’ll be staying in
@and the hit’s just keep coming: sense
If they lose money take them into public ownership, if they make money, privatise them.
Brilliant!
Why sell off a valuable asset that is likely to reap a massive profit for the state coffers? FF/FG in the pockets of the financial vultures who also have their dirty snouts in the trough of the housing market.Never a thought for the “common good” when it comes to the shekels.
@carol mullen: you answered your own question in the first sentence on your post
@SYaxJ2Ts: rrrrr
Logically, this must mean the more money we get back, the less well be paying on USC?
@Bryan: Dream on baby
@Bryan: It’s FGFF, they love tax. They introduced every tax
@Bryan: USC isn’t needed but they keep taking it. Income tax in 2019 – €25.6B. income tax in 2022 – €33.6B (approx 5B of it USC)….. Set to be even more income tax receipts in 2023….. Sickening
@another one? what’s going on is the semi state sec: Nothing sickening about it. More people paying tax = higher tax receipts
@SYaxJ2Ts: sure why not tax everyone 60%, 70%, 80% then. higher tax receipts as you say! …… It was a “temporary tax” that is not needed by the government anymore. LV said they would get rid of it within the last FG govt, what a lie! But the keep taking it to squander!…… I could do with that USC money to put towards my gas and food bills
@another one? what’s going on is the semi state sec: but overall rates haven’t changed. Someone on 40k, an average salary, pays rent, single and no kids pays an effective rate of 15%. That’s pretty fair in my book. We have paid a heavy price for give away budgets before.
@Bryan: they won’t get rid of usc
Even of debt was paid in full.
@SYaxJ2Ts: what’s fair is removing USC, a temporary tax, brought in because of the recession. Cost of living is up about 20% in since the start of 2021. Have salaries matched it? That 40k average wage now is like 32k in 2021…… Add to it massive rents and high mortgage interest rates…….. I’m talking to the wall if you’re happy to pay USC and keep defending govt. As for giveaway budgets, the 2024 budget gave €1.1b in tax relief. They’ve never taken in so much income tax ever and are €1.8b ahead of last year’s take in the year to the end of October. So we’re talking around €10B more income tax than 2019, which was the highest ever take then. Can’t see any heavy price from here!
Yeah, it’s amazing. AIB shares have never increased in value over the past 10 years, whilst share values of all other banks that suffered during the 2008-10 period have seen share increases. AIB is guaranteed by the taxpayer of Ireland, courtesy of FF. AIB bank got a 20-year tax-free clause from a FF Confidence and Supply agreement with FG, and the AIB share price still did not increase. Why is that? I’m sure that the multitude of current struggling mortgage holders and business owners would love to know.
@Jack Cass: They haven’t gone up in value because the market knew that the Government were holding a huge amount of shares and said they were going to sell them, thereby destroying any point in anyone investing in them in the medium term. If you believe otherwise explain why you didn’t invest yourself?
@Kilkenny Proud: I bought 5,000 shares in AIB in 2012 and while all other banks increased their share value since, AIB have lost at least 70% of their value. Now tell me how your logic works in relation to Bank of Ireland seeing as the market knew that the Government were holding all of their shares and were going to sell them, thus destroying any point in anyone investing in them?
@Jack ass: you made a bad investment lol
Great, now start buying shares in the Energy companies so we can for a reduction in our energy cost!
@PRdLQWQF: Who is stopping you?
@Kilkenny Proud: pointless question
Joined this Bank after Ulster Banks withdrawal from the Irish market, one of the worst decisions I ever made, horrible shower to deal with.
@Douglaslad: Abysmal Irish Bank
Worst bank in the country.. we need more competition
@Geoff Rob: Absolutely agree walk into any branch, and a boy/ girl just out of school wearing AIB costumes direct you towards a machine that’s ” out of order ” horrible bank.
Correction, it was an original 99% holding, not 71%. Taxpayer yet to see any of the recouped bailout proceeds.
The whole fiasco was a farce. The banks knew what they were doing, and the government had the step and be seen to do something. Otherwise, the whole system, capitalism, would have fallen on its knees. Make no, mistake, this was a very cunning move and well executed
State selling off assets sure what could go wrong. Eir is fantastic now of course. The state doesn’t own any of our essential infrastructure
So do we get to stop paying USC or what?
have your say