State sells more AIB shares and says it may exit bank this year

The State has cut its shareholding in AIB Group to 12.5 per cent
State sells more AIB shares and says it may exit bank this year

Reuters

The State has cut its shareholding in AIB Group to 12.5 per cent from 17.5 per cent and may exit the bank completely this year, the Minister for Finance said on Tuesday.

The Government cut its stake via a placement to institutional investors, yielding €652 million at a price of €5.60 per share, Paschal Donohoe said in a statement.

"It is now a realistic target that the State could exit its position in AIB later this year should market conditions allow," Mr Donohoe said.

The State effectively nationalised AIB in 2010 when it pumped €64 billion, or almost 40 per cent of its then annual economic output, into the country's banks after a huge property crash.

The Government spent €21 billion to bail AIB out and Mr Donohoe said the State has to date recovered €17.9 billion.

The State has been gradually selling down shares in AIB since 2021 following a 2017 IPO.

It sold its last shares in AIB's main rival, Bank of Ireland, in 2022.

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