LONDON, UK: The Irish State has sold part of its shareholding in AIB Group plc, the country’s largest bank, for €514.83 million. The sale was done through a placing of shares to institutional investors, which was completed on Monday.
The sale reduced the State’s stake in AIB from 45.8% to 40.8%, a decrease of 5%. The placing price was €3.93 per share, which was slightly below the closing price of €3.96 on Friday.
The proceeds from the sale will be returned to the Ireland Strategic Investment Fund, which manages the State’s investments in the banking sector. The Minister for Finance, Michael McGrath TD, will decide how to use the funds in the future.
The sale was part of the State’s strategy to gradually reduce its ownership in AIB, which it bailed out during the financial crisis. The State has previously sold 28.8% of AIB in 2017 and 4.4% in 2021.
The Minister for Finance has agreed not to sell further shares in AIB for the next 90 days, except for the sales through his trading plan, which will be limited to 45 days. The trading plan allows the State to sell small amounts of shares on a regular basis.
The sale was handled by BNP Paribas, Goldman Sachs and Morgan Stanley as joint bookrunners. Rothschild & Co acted as independent financial adviser and William Fry LLP and Allen & Overy LLP acted as legal counsel to the Department of Finance.
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