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The State sold a 2.06% stake in AIB at a price of €6.94 per share. Alamy Stock Photo
over and out
State sells its final shares in AIB as chief executive admits 'profound regret' over bailout
Finance Minister Paschal Donohoe said the sale will generate about €305.3 million upon settlement.
FINANCE MINISTER PASCHAL Donohoe has announced that the State has sold its remaining shares in AIB.
The sale completes the State’s exit of shareholding in the bank, after it stepped in to rescue it following the 2008 financial crisis.
The State sold a 2.06% stake in AIB at a price of €6.94 per share.
Donohoe said this will generate about €305.3 million upon settlement and bring to €19.8 billion the total amount returned to the State to date from its investment in AIB.
“Once again, this transaction was well received with significant demand from a large number of high quality international institutional investors,” he said.
On Monday, Donohoe said the final sell down is by way of an accelerated bookbuild transaction.
This is a process in which shares can be offered and sold in a short period of time, with little to no marketing or promotion.
“This ABB transaction represents our seventh such disposal in AIB and will reduce the State’s directed shareholding in the bank to zero.”
He said that it was an important milestone in delivering the government’s policy of returning the banking sector to private ownership.
AIB Group Chief Executive Officer Colin Hunt welcomed the announcement this morning, calling it a “significant day”.
“AIB profoundly regrets that the institution had to be rescued by the State almost two decades ago and owes an immense debt of gratitude to Irish taxpayers for the support provided during that challenging time,” Hunt said.
Since the bailout, he said the bank’s focus has been “on rebuilding trust, repaying the State and continuing to support our customers, communities and the wider economy”.
Donohoe said that based off current market prices, the State is around €600 million above break-even on its €29.4 billion investment in AIB, Bank of Ireland and PTSB.
He said the State also holds warrants in AIB, which were issued shortly after the initial public offering (IPO) of the bank in 2017.
“Department of Finance officials are considering options in this regard, including AIB purchasing these warrants back from the State,” he added.
At the end of March, the government sold shares amounting to around 8% which returned around €1.2 billion to the State. This sale reduced the government’s total shareholding to around 3%.
With reporting from Jane Moore
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