Government further lowers Bank of Ireland stake ahead of AIB share sale

The State now owns less than 8% of BoI, and the AIB sale is latest stage of a phased exit from its large shareholding

'The bank’s financial performance has improved significantly while investor appetite for banks is also recovering,' said Paschal Donohoe of the planned sale of AIB shares. 

Finance Minister Paschal Donohoe has announced his intention to sell part of the State’s 71.12% directed shareholding in AIB.

The sale will take place over the next six months through a pre-arranged trading plan that will be managed by Merrill Lynch International. The number of shares to be sold will depend on market conditions.

In order to ensure that the taxpayers’ interest is protected, shares will not be sold below a certain price, which the Department of Finance will keep under review.

The trading plan will become operational in mid-January and will terminate no later than six months thereafter.

Mr Donohoe said: “With our share trading programme proving successful in reducing our stake in Bank of Ireland, I am now announcing the restart of our phased exit from the State’s larger investment in AIB.

The bank’s financial performance has improved significantly while investor appetite for banks is also recovering, so these conditions provide a supportive environment to reduce our shareholding in the bank over time.

The news coincided with the Government further lowering its stake in Bank of Ireland to below 8%. The State now owns 7.97% of Bank of Ireland, down from a previous stake of 8.99%.