Ireland Could Cut AIB Stake To 3% Once Latest Buyback Completed, Says Finance Minister

Ireland may reduce its stake in AIB Group (AIBG.I) to approximately 3 per cent from the current 12 per cent after tentatively agreeing to the bank's recent share repurchase plan, Finance Minister Paschal Donohoe stated on Monday. In 2010, Ireland effectively took control of AIB by injecting 21 billion euros ($22.7 billion) into the bank after a banking collapse. Over the past four years, it has been steadily divesting its shares after an IPO in 2017.

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AIB, one of the two leading banks in the country, revealed the 1.2 billion euro buyback plan with the government last month to enhance shareholder returns after an unexpectedly significant rise in annual profit. The repurchase is expected to be finalised soon after AIB's annual shareholders' meeting on May 1. Earlier, Donohoe mentioned that this year, the state might completely withdraw from the bank following the sale of its final shares in the competing Bank of Ireland (BIRG.I) in 2022. The government retains a 57.5 per cent ownership in the smaller bank Permanent TSB (PTSB.I)AIB, one of the two leading banks in the country, revealed the 1.2 billion euro buyback plan with the government last month as a means to enhance shareholder returns after an unexpectedly significant rise in annual profit. The repurchase is expected to be finalized soon after AIB's annual shareholders' meeting on May 1. Earlier this year, Donohoe mentioned that the state might completely withdraw from the bank this year, following the sale of its final shares in the competing Bank of Ireland (BIRG.I) in 2022. The government retains a 57.5 per cent ownership in the smaller bank Permanent TSB (PTSB.I)