The State has sold its remaining shares in AIB through an accelerated bookbuild (ABB) transaction.
The sale of 2.06% stake at €6.94 per share generated c. €305.3m, bringing to €19.8bn the total received by the State for its interest in the bank.
The State held a 99.8% stake in AIB following its nationalisation in 2010.
Minister for Finance Paschal Donohoe said the State is now €600m ahead of break-even point on the €29.4bn spent to bail out AIB, Bank of Ireland and PTSB during the crash.
The taxpayer retains a 57% stake in PTSB, and the State sold off the remainder of its shares in Bank of Ireland three years ago.
A further €37bn was spent to bail out Irish Nationwide Building Society and Anglo Irish Bank.
“As announced earlier today, the State sold a 2.06% stake in AIB at a price of €6.94 per share which will generate c. €305.3m upon settlement, bringing to c. €19.8bn the total amount returned to the State to date from its investment in AIB," said Donohoe.
"With each ABB transaction successfully completed by the State we have achieved incremental improvements on the placing price while also managing to tighten the discount.
"Once again, this transaction was well received with significant demand from a large number of high quality international institutional investors.
"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."
Donohoe added that the gradual disposal of the State's shares in AIB had been successful in recovering taxpayer funds to be used for more productive purposes.
Colin Hunt, CEO of AIB, described returning to private ownership as "a significant day for the group," adding that that the bank "owes an immense debt of gratitude to Irish taxpayers" for the bail-out.
"Since then, our focus has been on rebuilding trust, repaying the State and continuing to support our customers, communities and the wider economy.
The group has undergone significant transformation and through the implementation of our proven strategy, we are well-positioned to continue generating value for all our stakeholders over the medium-term.
"With our market-leading customer franchise, resilient revenues and a strong capital position, we remain confident in the strong fundamentals of our business and our ability to play a positive role in the Irish economy, helping to build a more sustainable future for our customers while delivering sustainable returns for our shareholders.”
Donohoe and Hunt as made reference to the potential purchase of warrants in AIB issued to the State shortly after the bank's 2017 IPO.
Department of Finance officials are considering options for the warrants, including their acquisition by AIB, according to Donohoe.
Hunt said AIB remains in discussions with the Department of Finance regarding the warrants, which give the Minister for Finance the right to subscribe for new shares in AIB, subject to certain exercise conditions.
Photo: Colin Hunt (left). (Pic: Shane O'Neill, Coalesce)
