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State reduces AIB stake to 63.5pc

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The Minister for Finance, Paschal Donohoe TD, said that the State’s stake in AIB fell to 63.5pc after the successful sale of around 5pc of its shareholding.

The disposal of the stake, which was announced by Minister Donohoe yesterday, brought the government’s shareholding from 68.5pc to 63.5pc.

The sale of around 133.6 million shares raised around €308.4m, with each share priced at €2.28 each.

The shares were sold in a placing to institutional investors, a faster method of disposing of the government’s stake than drip-feeding shares onto the market.

The proceeds from the sale will be now returned by the Ireland Strategic Investment Fund to the exchequer. The Minister of Finance will not sell any further shares in AIB for a period of 90 days following the completion of the placing.

AIB chief executive Colin Hunt said the disposal of the 5pc shareholding was “an important development in the process of returning the State’s investment in the Group and a normalisation of the share register.”

AIB has now recouped around half of the €20.8bn cost of bailing out AIB more than a decade.

Last week, Minister Donohoe extended the AIB share trading plan until 24 January next year. It was expected to end no later than 10 July.

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