Government nears AIB exit as latest share sale raises €652 million

The Irish Government has sold a 5% stake in AIB for €652 million, reducing state ownership to 12.5% as it approaches a potential full exit from the bank later this year. The shares were sold at €5.60 each through an accelerated bookbuild transaction.

This marks the sixth disposal of AIB shares by the State, with the latest sale price 14% higher than the previous transaction in June. The total amount returned to the State from its AIB investment now reaches approximately €17.9 billion.

Finance Minister Paschal Donohoe noted strong demand from international institutional investors. The State’s shareholding has decreased significantly from 71% in early 2022 to the current 12.5%, suggesting a complete exit could occur this year.

AIB Group CEO Colin Hunt described the transaction as a milestone in normalizing the bank’s share register and returning the State’s crisis-era investment. The government is working with Rothschild & Sons as financial advisor, while William Fry and Allen & Overy provide legal counsel.

According to The Journal, a 90-day lock-up period prevents further share sales without prior consent from joint bookrunners.

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