As the Deputy will be aware, the State currently owns c. 71% of the shares in AIB, 14% of the shares in Bank of Ireland, and c. 75% of the shares in Permanent TSB. Following the IPO of AIB earlier this year all three of our bank investments are now listed on the main markets of the Irish and London stock exchanges, providing improved liquidity and marketability for the State's shares.
The valuation of the State's stake in each of the banks at the close of business 11 December 2017, was:
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Bank
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Valuation
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AIB
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€10,468 million
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Bank of Ireland
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€1,041 million
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Permanent TSB
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€784 million
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Officials in my Department continue to monitor the performance of the banks, their share prices and equity markets more generally to determine the next sensible opportunity to realise value from our investments. It is important to point out that exiting our investments in a measured way that will optimise value for our citizens, will take a number of years, but I do not propose to set out a rigid timeline for disposal. To do so would potentially impact the value we can achieve. However as I have said before I believe that over the medium term we will recoup all of the money that we invested in these banks during the financial crisis.
In order to proceed with another sale of bank shares, I would need to be satisfied that the market was prepared to put a fair and reasonable value on the bank's equity, bearing in mind its current performance, future prospects and the outlook for the economy, and I would do so on the advice of officials in my Department.
Unlike with the IPO of AIB earlier this year, any future sale of shares in any of our three banks, would likely be in the form of a "block" trade or accelerated book build as it is known in the markets. This is where a certain quantum of shares is sold into the market effectively overnight with very little advance notice given to investors. In these circumstances, signalling our intention to trade in advance could jeopardise the State's ability to achieve the best price on the day.
Clearly in the case of AIB, in order for me to proceed with another disposal next year I would need to obtain Cabinet approval as there is a restriction in the 'Programme for a Partnership Government', preventing any further sales of shares in that bank before the end of 2018.
