THE IRISH STATE is to sell off a further 8% of its stake in AIB, Finance Minister Paschal Donohoe has announced.

In a statement this evening, Donohoe said that the State’s shareholding in AIB would be reduced from 62% to 57%.

The state initially built up the shareholding in AIB after rescuing the bank following the 2008 financial crisis.

The Government expects to sell off 134 million AIB shares as part of the process, which is set to begin immediately.

Donohoe also said that any further stake in the company will not be sold for at least 90 days following this sale, without prior written consent by the joint bookrunners.

Rothschild & Sons is working with the Government as an independent financial advisor while William Fry and Allen & Overy are working as legal counsel to the Department on the sale.

It comes almost a year on from Donohoe initially announcing the drip feed sale of 15% of its shares in AIB.

At the time, the State had a 71% stake in the bank.

The trading plan was managed by US bank Merrill Lynch International and was similar to one used by the Government to sell part of its remaining bail0ut-era stake in Bank of Ireland.

The sale of Bank of Ireland shares was officially completed in September, with €6.7 billion in cash being recovered from the Government’s €4.7 billion investment and support for the lender between 2009 and 2011.