Press release
Minister announces the State’s exit from its Bank of Ireland directed shareholding
Published on
Last updated on
Published on
Last updated on
The Minister for Finance Paschal Donohoe today announces the completion of the Bank of Ireland share trading plan and confirms that the State’s directed shareholding has now reduced to zero. This is an important milestone in delivering on the government’s policy of returning the banking sector to private ownership.
Proceeds generated from the trading plan, which was managed by Citigroup Global Capital Markets amount to approximately €841 million. The government has now recovered almost €6.7 billion in cash from its €4.7 billion investment in and support for Bank of Ireland over the 2009-2011 period. Shares were sold through phase three of the trading plan at an average price of €6.17 per share, up from an average of €5.64 in phase two and €4.96 in phase one.
In announcing the completion of the share trading plan and the State’s exit from its Bank of Ireland directed shareholding, the Minister commented:
“When I announced the launch of the share trading plan in June 2021, I commented that banking is an activity that involves taking credit risk and therefore should be provided by the private sector. It follows that taxpayer funds which were used to rescue the Irish banks, should be recovered and used for more productive purposes. The gradual disposal of the State’s investment in Bank of Ireland into a rising market has been successful in delivering on this objective for our citizens.
"We have also made great progress in relation to our investments in PTSB and AIB, which collectively are still worth over €4.9 billion notwithstanding various disposals this year. Our stake in PTSB is expected to reduce from 75% to approximately 62.4% later this year when the bank issues new shares in part exchange for the Ulster business it has agreed to purchase from NatWest Group Plc. Meanwhile at AIB, which is by far the State’s largest remaining investment, our stake has reduced from 71.2% to 63.5%."
The Department of Finance was advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to the share trading plan.
This press release, is not for publication or distribution, in whole or in part, directly or indirectly, in, into or from the United States of America (including its territories or possessions, any state of the United States of America and the District of Columbia) (the “United States”), Australia, Canada, Japan, the Republic of South Africa, Switzerland or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction. The distribution of this press release may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This press release does not contain or constitute an offer of, or the solicitation of an offer to buy, the securities referred to herein to any person in any jurisdiction, including in the United States, Australia, Canada, Japan, the Republic of South Africa, Switzerland or in any jurisdiction to whom or in which such offer or solicitation is unlawful.
The securities of Bank of Ireland described in this press release have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any applicable state or foreign securities laws and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. There shall be no public offering of securities in the United States or any other jurisdiction.
Citigroup Global Markets Limited (“Citi”), which is authorised by the Prudential Regulation Authority (the ”PRA”) and regulated in the United Kingdom by the Financial Conduct Authority (the ”FCA”) and the PRA, is acting exclusively for the Minister for Finance and no one else in connection with the trading plan and will not regard any other person(s) as its client in relation to the trading plan and will not be responsible to anyone other than the Minister for Finance for providing the protections afforded to clients of Citi nor for providing advice in relation to the trading plan.
N.M. Rothschild & Sons Limited (“Rothschild & Co”), which is authorised and regulated by the FCA in the United Kingdom, is acting exclusively for the Minister for Finance and no one else in connection with the trading plan and will not be responsible to anyone other than the Minister for Finance for providing the protections afforded to clients of Rothschild & Co, nor for providing financial advice in connection with the trading plan. Neither Rothschild & Co nor any of its directors, officers, employees, affiliates, alliance partners and/or agents owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person(s) who is/are not a client(s) of Rothschild & Co in connection with the trading plan.