Irish government reduces stake in AIB Group, fourth sale raises €515m, reports



The Irish government has significantly reduced its stake in AIB Group, its fourth sale, and raised 515 million euros ($583 million). The government sold a 5% stake at 3.93 euros per share, an 8% increase from the previous transaction price. The move reduced the government’s shareholding ratio from 71% to 40.8% and increased the bank’s free float ratio to 59.2%.

The sale met significant demand from international investors and demonstrated strong interest in the bank. The funds raised will be used to replenish the Irish Strategic Investment Fund, bringing AIB’s total return on investment to approximately €13.6 billion ($15.4 billion).

Finance Minister Michael McGrath announced further share sales would be assessed following the end of the lockdown, based on the government’s confidence in the private sector banking sector. The remaining state stake is currently worth about 4.3 billion euros ($4.9 billion).

AIB reported “very strong” third-quarter results amid a rising interest rate environment, with full-year earnings rising for the third time this year. The bank expects a strong final quarter of 2023.

Morgan Stanley said the reduction in government holdings from 1.2 billion shares to 1.07 billion was achieved by selling shares at a discount of 3.93 euros per share. The sale price represents a 3.2% discount to AIB’s closing price of 4.06 euros, indicating the government’s strategic approach to reducing its stake.

AIB is currently preparing for a new strategic phase under the guidance of CEO Colin Hunt, focused on creating value for stakeholders and sustainable profitability.

This article was created and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.


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