AIB has welcomed the announcement by the Department of Finance to sell 8% of its stake in the bank.
In a statement this morning, Finance Minister Paschal Donohoe said that the State’s shareholding in AIB has been reduced from 62% to 57%.
Colin Hunt, AIB Group plc Chief Executive said this morning: “We very much welcome the decision and subsequent transaction undertaken by the Minister for Finance.
It represents yet another crucial step in the process of normalising the share register and restoring the State's investment in the Group. The Irish taxpayer owes AIB a huge debt of appreciation for its assistance during the financial crisis.
"To ensure that we continue to generate sustainable returns for all of our shareholders, we stay focused on our strategy to grow and strengthen the Group."
After saving the bank in the wake of the 2008 financial crisis, the state first increased its investment in AIB.
134 million shares of the proposed sell-off were sold earlier this morning as reported by Donohoe last night.
The sale brought in a total of €396.6 million, with each share selling for €2.96.
Donohoe stated in a statement this morning that "The State has made good progress this year in lowering its stake in AIB from 71.1% at the beginning of the year to 57% today."
This Government thinks that banking is a service that should primarily be provided by the private sector and that government funds used to save the banks should be recovered and utilised for more constructive reasons, as I have already stated.
Additionally, according to Donohoe, no additional shares of the company may be sold for at least 90 days after this one without the joint bookrunners' prior written consent.
The Government would next continue to evaluate "other opportunities" to sell off further of its holding in AIB, according to Donohoe.
The government invested and supported Bank of Ireland for €4.7 billion between 2009 and 2011, and the sale of its shares resulted in the government receiving €6.7 billion in cash as payment.
