Minister for Finance Paschal Donohoe has announced the commencement of the final phase of the State’s exit from its directed shareholding in AIB Group plc, marking a significant step in the Government’s plan to return Ireland’s banking sector to full private ownership.
The exit will be executed through an accelerated bookbuild (ABB) transaction, a process commonly used to sell large volumes of shares quickly to institutional investors. This marks the seventh ABB transaction undertaken by the State in relation to AIB since it began divesting its holdings in the bank.
In a statement accompanying the announcement, Minister Donohoe said:
“As announced today, the State has launched a final sell-down of its directed shareholding in AIB by way of an accelerated bookbuild transaction. This ABB transaction represents our seventh such disposal in AIB and will reduce the State’s directed shareholding in the bank to zero. This is an important milestone in delivering on the Government’s policy of returning the banking sector to private ownership.”
Background
The State became a major shareholder in AIB following the 2008 financial crisis, injecting capital as part of a broader effort to stabilise the banking system. At its peak, the Government held a controlling stake in the bank. Over the past several years, it has gradually reduced its holdings through a series of market transactions.
The final sell-down reflects the Government’s continued efforts to normalise the ownership structure of Ireland’s major financial institutions and to recoup value for the taxpayer. Proceeds from the transaction will be returned to the Exchequer.
Further details, including the final transaction size and price, are expected to be announced once the bookbuild is completed.
Paschal-Donohoe-Picture-by-Bundesministerium-fur-Finanzen
