Irish State to Sell 5% Stake in AIB Group to Institutional Investors

Published 27/01/2025, 17:48
Irish State to Sell 5% Stake in AIB Group to Institutional Investors

DUBLIN - The Irish government, represented by the Minister for Finance Paschal Donohoe, has announced plans to sell approximately 5% of its shareholding in AIB Group (OTC:AIBRF) plc. This sale will take the form of a placing to institutional investors, reducing the State's stake from about 17.5% to roughly 12.5%.

The sale involves roughly 116 million ordinary shares of the banking company and will be priced via an accelerated book building process, which began immediately following the announcement. The exact price per share and the total number of shares to be placed will be disclosed after the book building process concludes.

BNP Paribas (OTC:BNPQY), BofA Securities Europe SA, Goldman Sachs International, and Goodbody Stockbrokers UC are acting as Joint Bookrunners for the transaction. Independent (LON:IOG) financial advice for the Department of Finance is being provided by Rothschild & Co, with legal counsel from William Fry LLP and Allen Overy Shearman Sterling LLP.

In addition to the placement, the Minister has committed to a 90-day lock-up period post-sale, during which no further shares will be sold without the consent of the Joint Bookrunners. This lock-up period is reduced to 30 days for sales through the Minister's trading plan, which has been extended for another six months until 23 July 2025, unless further extended.

The trading plan, managed by Merrill Lynch International, aims to ensure that no more than 15% of AIB's total trading volume is sold during the plan's term and that shares are not sold below a price that represents fair value and best value for taxpayers. Since January 2022, the trading plan has generated approximately €2.1 billion, with the latest phase contributing around €628.2 million.

The information in this article is based on a press release statement.

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