The Irish government on Tuesday confirmed that it has reduced its holding in AIB Group PLC, but remains a majority shareholder following the taxpayer bailout of the Dublin-based bank conducted more than a decade ago.

In a placing run by Goldman Sachs and Goodbody Stockbrokers as joint bookrunners, the Irish Department of Finance has sold 133.9 million shares in AIB at a price of €2.28 each, worth €304.8 million in total.

The Irish state now holds around 1.70 billion shares in AIB Group, reflecting a 63.5% stake.

Shares in AIB Group were 6.2% lower at 199.00 pence on Tuesday morning in London.

‘It is an 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. We remain focused on our strategy to grow and strengthen the group to ensure we continue generating sustainable returns for all our shareholders,’ said AIB Chief Executive Colin Hunt.

On Wednesday last week, the UK government said it would continue to sell down its own stake in NatWest Group PLC for another year. Similar to AIB, NatWest, then named Royal Bank of Scotland Group, was bailed out by taxpayers in 2008.

The UK government currently holds a 48.5% stake in NatWest.

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