AIB Group PLC on Tuesday noted that the Irish Department of Finance has trimmed its stake in the financial services company.

According to an announcement on Monday from Morgan Stanley, a joint bookrunner alongside Goldman Sachs Group Inc and BNP Paribas SA, Ireland’s finance department planned to sell approximately 131 million of AIB shares, reducing its stake to around 41% from around 46%. The Irish state’s shareholding will be reduced to 1.07 billion shares from 1.12 billion shares.

The placing, set to take place on Thursday, will be at €3.93 per share with gross proceeds of around €514.8 million.

AIB shares were 0.2% lower at €4.11 each on Tuesday morning in Dublin.

AIB Chief Executive Officer Colin Hunt said: ‘It is another important development in the process of returning the state’s investment in the group and a normalisation of the share register. AIB owes the Irish taxpayer an immense debt of gratitude for its support during the financial crisis. As we conclude the successful delivery of our three year strategy, we are now preparing for the next phase of

the group’s development and remain committed to the creation of value for all our stakeholders and delivery of sustainable returns.’

The Irish state’s stake in the company fell below 50% back in June, in what AIB labelled a ‘milestone’.

The Irish government stepped in to buy a stake in AIB in 2009 amid the global financial crisis.

The state pumped a total of €29.4 billion into AIB, Bank of Ireland Group PLC, and Permanent TSB Group Holdings PLC over 2009 to 2011.

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