A repurchase would crystallise large capital losses for pre-crash AIB investors, even if they could be used to offset tax on investment gains elsewhere
AIB has offered to buy the shares of investors who have only small holdings in the bank, dating from the pre-2008 crash. Photograph: Dara Mac Dónaill / The Irish Times Photograph: Dara Mac Donaill / The Irish Times
An offer for 20 shares would equate to cheque of a little over €100, based on AIB’s current stock price. However, if such investors were to sell their shares through a stockbroker the proceeds would almost entirely be absorbed by related fees, the bank noted.A holding of 20 shares equates to what were 5,000 units of AIB before it moved in 2015 to swap every 250 shares in issue at the time for one new share.
A repurchase would crystallise large capital losses for pre-crash investors, even if they could be used to offset tax on investment gains elsewhere. AIB has promised to publish a document on tax considerations for investors at the time of an offer. Almost 69,000 of AIB’s 75,000 investors are in this small holdings category – but, combined, represent only 0.01 per cent of all its stock.
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