The trading plan has been one of a number of successful mechanisms used by the State in reducing its shareholding in AIB since the beginning of 2022.
To date, proceeds generated from phase four of the AIB trading plan amount to c. €124.7 million and the average price per share achieved is €4.23. These proceeds will be returned to the Ireland Strategic Investment Fund pending further consideration by the Minister.
The trading plan has contributed to the State’s directed shareholding in the Company reducing from 71.12% at the beginning of 2022 to c. 40.8% currently. In total, c. €824 million has been raised from the AIB trading plan since it became operational in January 2022.
The extension announced today will become operational in the coming weeks and will now end no later than 23 July 2024, unless further extended by the Minister.
In announcing the extension of the trading plan, the Minister commented:
“The AIB trading plan has played an important role in enabling us to gradually reduce our shareholding in the bank since it became operational, especially when opportunities for larger block trades were not available to us. Therefore, I am happy to announce the renewal of the trading plan into a fifth phase. As before, we will continue to look at other disposal options, should they present themselves.”
In line with the Government’s commitment to deliver best value for the taxpayer, shares will not be sold below a pre-determined floor price, which the Department of Finance will keep under review.
Merrill Lynch International (”BofA Securities”) will continue to act on behalf of the Minister in executing the trading plan. BofA Securities will continue to target that up to, but no more than, 15% of the expected aggregate total trading volume in the Company is to be sold over the duration of the trading plan. The number of shares sold will depend on market conditions, amongst other factors.
The Department of Finance is being advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to this transaction.
