State to sell further 5% of its stake in AIB 

In June, the State cut its shareholding in AIB to below 50% for the first time since effectively nationalising the bank more than a decade ago. Picture: Aidan Crawley/Bloomberg

The State is to cut its shareholding in AIB further announcing plans to dispose of approximately 5% of the group.

The Minister for Finance Michael McGrath said the disposal of the shares will be by way of a placing to institutional investors.

The placing is expected to comprise approximately 131 million of the company's ordinary shares. As a result of the placing, the overall size of the Irish State’s shareholding in the bank will be reduced from approximately 45.8% to approximately 40.8%.

In June, the State cut its shareholding in AIB to below 50% for the first time since effectively nationalising the bank more than a decade ago. Following the crash, the State pumped €64bn into the country's banking sector.

The Minister has also undertaken not to sell further shares in the Company for the period of 90 days following the completion of the placing details of which will be announced in due course.

Rothschild & Co is acting as independent financial adviser and William Fry and Allen & Overy are acting as legal counsel to the Department of Finance in connection with the sale.

Last September, The State sold its last remaining shares in Bank of Ireland and still owns approximately 57% of Ptsb.