Move completes bank's return to full ownership after 2009 rescue
The Irish government has sold its remaining shares in AIB Group, ending more than a decade of state involvement in the lender and returning it fully to private ownership.
On Monday, the state’s Department of Finance finalised the sale of its 2.06% stake through an accelerated bookbuild, selling shares at €6.94 (£5.92) each. The transaction is expected to generate around €305.3 million (£260.25 million), according to a statement from the department.
This latest sale marks the seventh such disposal since the government’s investment in AIB during the 2009 banking bailout. In total, approximately €19.8 billion (£16.88 billion) has now been returned to the state from its involvement in the bank, which was initially rescued with €20 billion (£17.05 billion) in taxpayer funds.
The move aligns Ireland with other European countries reducing or eliminating post-crisis bank holdings. Iceland recently announced plans to sell down its stake in Islandsbanki hf, while the UK concluded its long-standing investment in NatWest Group earlier this year.
The final step in the Irish government’s exit came shortly after AIB shareholders approved a €1.2 billion (£1.02 billion) share buyback from the state in May, reducing the state’s holding to about 3%. That remainder has now been sold off.
“This is an important milestone in delivering on the government’s policy of returning the banking sector to private ownership,” said finance minister Paschal Donohoe in the department's statement.
AIB confirmed it is still in talks with the Department of Finance regarding the possible repurchase of warrants issued to the minister at the time of its 2017 initial public offering. If an agreement is reached, it would result in those warrants being cancelled and further capital returned to the state.
The government’s withdrawal may lead to renewed scrutiny of legacy restrictions placed on AIB, including limitations on executive remuneration that have remained since the bailout.
“Reaching this milestone is a significant day for the group,” said AIB chief executive Colin Hunt. The bank “owes an immense debt of gratitude to Irish taxpayers for the support provided during that challenging time,” he added.
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