Government sells AIB stake worth 400 million euros

The government has announced a plan to sell an additional 5 percent of AIB to reduce taxpayers’ ownership of the bank to 57 percent.

Based on the closing price of the AIB share on Monday, the share is estimated at around 400 million euros.

Treasury Secretary Paschal Donohoe TD said it plans to sell the shares through a placement with institutional investors – meaning the shares will be sold in one block in a structured sale process and not taken public on an ad hoc basis, the National Treasury Management has said Agency (NTMA), which manages shares in bailed out banks, used both methods to reduce stakes in Bank of Ireland and AIB last year.

The books on the new deal opened Monday, which in practice means investors will be asked to bid for shares.

Investment bank Rothschild is acting as independent financial adviser and William Fry and Allen & Overy are acting as legal counsel to the Treasury in connection with the sale.