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Minister announces the resumption of the AIB share trading plan

The AIB Group plc (“AIB”) share trading plan, first announced in December 2021 and subsequently extended in June 2022, was paused on 28 June 2022 following the Irish State’s successful disposal of shares in AIB by way of an accelerated bookbuild. As is the convention with such a sales process, the State, as the seller of shares, agreed to a “lock-up” period which meant that the State was unable to sell further shares in AIB for a period of 90 days. 

Following the completion of the lock-up period, Merrill Lynch International (“BofA Securities”) has resumed the AIB share trading plan under the same terms and conditions as were agreed in June 2022. BofA Securities will continue to target that up to, but no more than, 15% of the expected aggregate total trading volume in AIB is to be sold over the duration of the share trading plan. The number of shares sold will depend on market conditions, amongst other factors. 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.

In announcing the resumption of the share trading plan, the Minister commented:

“Following the successful disposal of 5% of the issued share capital of AIB by the State in June, the share trading plan has now resumed following a “lock-up” period and this will allow us to continue to reduce our shareholding in the bank gradually over time. I will continue to keep other monetisation options open, should these opportunities present themselves.

It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds which were used to rescue the banks should be recovered and used for more productive purposes.”

The share trading plan will end no later than 24 January 2023, unless further extended by the Minister.

The Department of Finance is being advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to this transaction.