State sells 5% of AIB for €397m

Ireland pumped €64bn, or almost 40% of its then annual economic output, into the country's banks just over a decade ago following the property crash.

The state's stake in AIB stood at 71% at the start of the year.

Tue, 08 Nov, 2022 - 08:05

The State sold 5% of Allied Irish Banks (AIB) to institutional investors for €396.6m, the department of finance said, part of a drive to sell down bank stakes acquired during the financial crisis.

The government began gradually selling shares in AIB for the first time since a 2017 IPO at the start of the year through a share trading plan, and Monday's placing marked the second time in five months it has sold a 5% stake in one go.

As a result of the placing, at €2.96 per share via an accelerated book build, the overall size of Ireland's shareholding will be reduced from to 57% from 62%, Finance Minister Paschal Donohoe said in a statement.

The state's stake stood at 71% at the start of the year.

Ireland pumped €64bn, or almost 40% of its then annual economic output, into the country's banks just over a decade ago following the property crash.

It sold the last of its shares in Bank of Ireland in September. Its stake in Permanent TSB is to fall to 62% from 75% after NatWest took a minority stake in the bank.

Reuters