17th Jun 2025 09:31
(Alliance News) - AIB Group PLC on Tuesday confirmed its return to private ownership, as the Irish government divested its remaining shares in the bank.
The Dublin-based commercial bank was bailed out by Irish taxpayers during the 2008 financial crisis, when the government acquired a majority stake.
Ireland Finance Minister Paschal Donohoe on Tuesday said the disposal of the state's remaining 2.1% stake in AIB was complete. The disposal was carried out via the placing of 44.0 million shares at EUR6.94 each for a gross EUR305.3 million. The proceeds will be returned to the state Strategic Investment Fund upon settlement, pending a final decision by Donohoe.
AIB said it is still discussing the potential purchase of warrants which were issued to the minster back in 2017, when AIB began public trading in Dublin. If the purchase were to proceed, the warrants would be cancelled and funds returned to the Irish state.
AIB Chief Executive Colin Hunt commented: "Reaching this milestone is a significant day for the group. AIB profoundly regrets that the institution had to be rescued by the state almost two decades ago and owes an immense debt of gratitude to Irish taxpayers for the support provided during that challenging time.
"Since then, our focus has been on rebuilding trust, repaying the state and continuing to support our customers, communities and the wider economy."
Hunt added: "The group has undergone significant transformation and through the implementation of our proven strategy, we are well-positioned to continue generating value for all our stakeholders over the medium-term."
AIB shares were down 2.4% at 581.45 pence each on Tuesday morning in London.
Tuesday's announcement follows Natwest Group PLC's return to private ownership back in May. Like AIB, the Edinburgh-based bank relied on the taxpayer - in Natwest's case, UK taxpayers - to evade administration after the 2008 crash, and nearly two decades later, confirmed the UK Treasury had exited its entire holding.
By Holly Munks, Alliance News reporter
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