LONDON: The Minister for Finance, Paschal Donohoe TD today announced his intention to sell part of the State’s 13.9% directed shareholding in Bank of Ireland over approximately the next six months through a pre-arranged trading plan that will be managed by Citigroup Global Markets Limited.
Citi were appointed to the role from the Department of Finance’s Panel of Financial Advisors following a mini-tender competition.
Under the trading plan, Citi have been mandated to effect a measured and orderly sell down of shares in the Company on behalf of the Minister. The Minister has instructed Citi to target that up to, but no more than, 15% of the expected aggregate total trading volume in the Company is to be sold over the duration of the trading plan. The number of shares sold will depend on market conditions, amongst other factors.
In order to ensure that the taxpayers’ interest is protected, shares will not be sold below a certain price per share which the Department of Finance will keep under review. The trading plan will become operational in the coming days and will terminate no later than six months from that point, but can be renewed at the Minister’s discretion.
Commenting on the news today, the Minister said: “Today’s announcement marks the start of a phased exit from the State’s remaining investment in Bank of Ireland. When all cashflows are taken into account the taxpayer has already recorded a surplus on its investment in and support for the bank, even before the sales of these shares are accounted for. A trading plan enables the State to sell down its shares in a low cost carefully controlled manner while avoiding the need to try to time our disposals with market conditions”.
The Minister for Finance currently owns circa 150.4 million ordinary shares in the Company through the directed portfolio of the Ireland Strategic Investment Fund (ISIF).
These shares represent 13.9% of the issued share capital of the Company. The Department of Finance is being advised by N.M. Rothschild & Sons Limited and William Fry in relation to this transaction.