(Alliance News) - The Irish government on Tuesday confirmed it has reduced its holding in AIB Group PLC to 12.5% from 17.5%, as Dublin exits the investments it made in local banks during the financial crisis.
The planned sale was first announced by Minister for Finance Paschal Donohoe after the London market close on Monday.
BNP Paribas, BofA Securities Europe SA, Goldman Sachs International and Goodbody Stockbrokers UC acted as joint bookrunners to place 116.4 million AIB shares at EUR5.60, worth EUR652.1 million in total. The money will be returned to the Ireland Strategic Investment Fund, "pending further consideration by the minister", BNP Paribas said on Tuesday.
AIB shares were down 1.6% to 476.50 pence in London on Tuesday morning. They were quoted at EUR5.57 in Frankfurt.
The Finance ministry has committed to not sell any more AIB shares for 90 days. Following the tax payer bailout of key Irish banks during the financial crisis of 2008, the government had owned more than 70% of AIB. It started selling down this stake at the start of 2022.
A total of EUR18 billion has been returned to Irish taxpayers since then, AIB said on Tuesday, adding it was "deeply grateful" to them.
"This well-supported transaction is another important milestone in the process of returning the state's investment in the group and a normalisation of the share register," said AIB Chief Executive Officer Colin Hunt.
By Tom Waite, Alliance News editor
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