The Irish Government has reduced its shareholding in AIB Group from 17.5% to 12.5%, with a potential full exit from the bank anticipated later this year, according to Minister for Finance Paschal Donohoe.
This move was facilitated through a share placement to institutional investors, raising €652 million at a price of €5.60 per share, Mr. Donohoe announced on Tuesday. “It is now a realistic target that the State could exit its position in AIB later this year should market conditions allow,” he added.
The State originally took over AIB in 2010 during the financial crisis, injecting €64 billion into Ireland’s banks following a catastrophic property market crash. Of that, €21 billion was allocated to rescue AIB specifically. To date, the Government has recovered €17.9 billion of the bailout funds.
Since AIB’s initial public offering (IPO) in 2017, the State has been gradually divesting its shares. This latest reduction marks another step in its exit strategy, following the complete sale of its holdings in AIB’s main competitor, Bank of Ireland, in 2022.
The Government’s strategy reflects an ongoing effort to recoup taxpayers’ investments while capitalizing on favorable market conditions.
