The government has sold 135 million AIB Group shares for gross proceeds of c.€400m, reducing its AIB stake although the bank is still in state control.

The disposal was effected by way of a placing of shares to institutional investors, priced at €2.96 per share.

The state’s shareholding will be reduced from 1,656m shares, representing 62.0% of the share capital of the bank, to 1,520m shares, c.57.0% of the bank’s ordinary share capital.

The pre-expenses proceeds of €400m will be returned by the Ireland Strategic Investment Fund to the Exchequer.

Rothschild & Co is acting as independent financial adviser and William Fry and Allen & Overy LLP are acting as legal counsel.

In Association with

Colin Hunt, AIB chief executive said: “It is another 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.

“We remain focused on our strategy to grow and strengthen the group to ensure we continue generating sustainable returns for all our shareholders.”