The government plans to sell the last of its AIB shares within months after launching a €1.2bn taxpayer share buyback programme.
The deal has looked in doubt in recent weeks as AIB shares have fallen sharply following US President Donald Trump's announcement of tariffs.
However, on Wednesday, AIB shares rose just half a cent from the agreed deal price.
“We are delighted to be returning an additional €1.2 billion to the Government through the latest share buyback of AIB,” said Colin Hunt, CEO of AIB. “These recent developments represent an important milestone in repaying taxpayers for their support, normalising the Group’s share register and increasing the liquidity of AIB shares.”
Finance Minister Paschal Donohoe has confirmed that the government is no longer AIB's largest shareholder.
“Through the ongoing share trading programme, our stake will continue to be reduced and we will be able to exit the company in the coming months,” Mr Donohoe added.
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The final batch of shares is expected to be gradually offered for sale by the time AIB publishes its interim results on August 1.
Based on the current value of AIB shares, the state expects to recover a total of 19.9 billion euros from the bank.
“Overall, at current market prices, the government is around €300 million above breakeven on its €29.4 billion investment in AIB, Bank of Ireland and PTSB,” Mr Donohoe said.
The government is likely to lift the pay cap on the bank's executives after the last shares are sold, as happened with Bank of Ireland during the 2022 crisis when the state exited its investment in the bank.
Sourse: breakingnews.ie
