(Alliance News) – The Irish government on Tuesday confirmed it has reduced its stake in AIB Group, though it still retains a majority holding following the taxpayer bailout of the Dublin-based bank during the financial crisis over a decade ago.
The Irish Department of Finance said it sold 133.9 million AIB shares, or a 5% stake, at a price of EUR2.28 per share,worth EUR304.8 million in total. The placing was run by Goldman Sachs and Goodbody Stockbrokers as joint bookrunners.
AIB shares were down 6.4% at 198.50 pence per share in London early Tuesday.
This brings the Irish state’s shareholding down to 63.5%.
“It is an important development in the process of returning the state’s investment in the group and a normalisation of the share register. AIB owes the Irish taxpayer an immense debt of gratitude for its support during the financial crisis,” AIB Chief Executive Colin Hunt said.
Last week, the UK government said it will continue to sell down its own stake in NatWest Group for another year. Similar to AIB, NatWest, then Royal Bank of Scotland Group, was bailed out by…
