AIB clears court privatisation hurdle

State-owned AIB is on its way back to privatisation after the Commercial Court approved its application to reduce its share capital by €5bn.

The move means the bank will have the option of paying a dividend to shareholders, the largest of which is the State, which in 2009, through the National Pensions Reserve Fund Commission (NPRFC), acquired €3.75bn in shares giving it 99% of the company’s ordinary shares.

Under the capital reduction, those shares can ultimately beredeemed by AIB from distributable profits or further share issue.