The Minister for Finance, Michael McGrath, announces that he has accepted an offer from AIB Group Plc (the “Company” or “AIB”) to participate in their 2023 share buyback programme on a directed basis. The buyback will see the Company acquire €215 million of its shares from the State by way of an off-market purchase. The buyback will be in addition to the payment of a proposed €166 million cash dividend to all shareholders by the Company.
The Minister has confirmed that unlike last year’s share buyback programme, where the State participated on a proportionate basis, AIB will acquire the full €215 million of shares from the State. This will result in the State’s shareholding in the Company reducing by a further 1% to c. 53.4%. The buyback was completed at a price of €3.938 per share being the closing price on Euronext Dublin on the 24th April 2023. The transaction is expected to settle on the 26th April 2023.
In announcing the transaction, the Minister for Finance commented, “given the strong rise in AIB’s share price over the past year, I have agreed to participate in the Company’s latest buyback programme on a directed basis. This will be another positive step for both AIB and the State, with our shareholding reducing further and recovering an additional €215 million from our investment in AIB.”
“When combined with the annual dividend already announced, the State expects to receive a total of approximately €306 million from the Company, which will be paid to the exchequer, bringing to c. €12 billion the total amount returned to the State since 2010. These funds will be used for the benefit of the citizens of the State. After this transaction the State retains a shareholding in AIB of c. 53.4% currently worth approximately €5.5 billion. I will continue to monitor market conditions for further opportunities to reduce the State’s shareholding in AIB.”
The Department of Finance was advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to this transaction.