Treasury Secretary, Paschal Donohoe TD, has announced plans to sell about 5 percent of AIB to institutional investors via a so-called placement – effectively inviting buyers to bid for a share of the available shares.
The move will reduce the state’s majority stake in the bank to about 63.5 percent from the current 68.5 percent. Based on the share’s closing price yesterday, the bank has a market capitalization of EUR 6.5 billion, with the stake to be sold being valued at around EUR 325 million, depending on the daily price.
The funds raised will reclaim part of the €20.8 billion cost of bailing out the bank more than a decade ago, about half of which has been recovered so far.
Placement with institutional investors is a quicker way to reduce the state’s stake than the process used to reduce taxpayers’ stake in the Bank of Ireland last year, which was achieved by injecting shares into the market took place.
The AIB Offering is expected to consist of 133.7 million common shares, representing approximately 5 percent of the Company’s issued common stock and 7.3 percent of the state’s interest.
The Minister has undertaken not to sell any further shares in AIB without prior written consent for a period of 90 calendar days after the closing of the Placement.
London investment bank Rothschild is acting as independent financial adviser on the transaction and William Fry and Allen & Overy are acting as legal counsel to the Treasury in connection with the sale.
https://www.independent.ie/business/irish/government-to-sell-around-325m-of-aib-shares-41795734.html Government sells AIB shares worth around 325 million euros