Treasury Secretary Announces Resumption of AIB Share Dealing Scheme

Treasury Secretary Paschal Donohoe has announced that the government has resumed its AIB stock trading plan.

The move to sell part of the 71.12 percent stake was first announced by Mr. Donohoe last December and became effective in mid-January to reduce government investment in AIB.

The stock trading plan was extended in June of this year and then paused on June 28 following the sale of shares via an accelerated bookbuild.

The shares were sold to institutional investors in a placement, a quicker way to sell the government’s stake than placing shares on the market.

Following this sale process, the state agreed to a “lock-up” period, which meant the government could not sell any more shares in the bank for a period of 90 days.

That period is now complete as Merrill Lynch resumes the stock trading plan on the same terms agreed in June.

“Following the State’s successful sale of 5 percent of AIB’s issued share capital in June, the share trading plan has now resumed after a lock-up period and this will allow us to further reduce our stake in the bank gradually over time,” said Mr. Donohoe.

The statement added that up to, but not more than, 15 percent of the bank’s anticipated total trading volume will be sold over the course of the stock trading plan.

Shares will not be sold below a predetermined floor price monitored by the Treasury Department.

After the extension in June, the plan is due to end no later than January 24 next year unless the minister extends it further.

The state’s stake in AIB has now been reduced to 63.5 percent.

“I will continue to keep other monetization options open should these opportunities present themselves,” said Mr. Donohoe.

“This government remains convinced that banking is primarily an activity that should be provided by the private sector and that taxpayer money used to bail out the banks should be reclaimed and used for more productive purposes,” he added .

Last week Mr Donohoe said he expected to announce shortly that the State’s direct holding in the Bank of Ireland had been “reduced to zero”. Treasury Secretary Announces Resumption of AIB Share Dealing Scheme

Fry Electronics Team

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