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State extends plans to sell AIB stake

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Finance Minister Paschal Donohoe

Finance Minister Paschal Donohoe

Finance Minister Paschal Donohoe

Minister for Finance Paschal Donohoe said that the government will extend its AIB share trading plan.

The move to sell part of the 71.12pc stake was first announced by Mr Donohoe last December and became operational in the middle of January in order to reduce the State’s investment in AIB.

The share trading plan was expected to end no later than 10 July. At the time, the Department of Finance said the trading plan could be renewed at the Minister’s discretion.

Following the extension, the plan is now expected to end no later than 24 January next year.

The State’s shareholding in AIB has now reduced to 68pc. Proceeds generated from the share trading plan since its launch now stand at around €161m, with the average price per share to date standing at €2.32.

In line with government commitment to deliver best value, shares will not be sold under a pre-determined floor price which is kept under review by the Department of Finance.

The trading plan will continue to be managed by Merrill Lynch International (BofA Securities). It will continue to target a sale of up to but no more than 15pc of the expected aggregate total trading volume in the bank.

“"When I announced the launch of the share trading plan last December, I said that the State's exit from its investment in AIB would be a multi-year journey, so it is important, and I believe it is in the taxpayers' best interest, to extend the share trading plan for a further period,” Mr Donohoe said.

“I will continue to keep other monetisation options open, should these opportunities present themselves,” he added.

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