The disposal of these shares (the "Placing Shares") will be by way of a placing to institutional investors (the "Placing").
The price at which the Placing Shares are sold (the "Placing Price") will be determined by way of an accelerated book building process. The books will open with immediate effect following this announcement.
The Placing is expected to comprise approximately 116 million of the Company's ordinary shares, representing approximately 5% of the issued ordinary capital of the Company. As a result of the Placing, the overall size of the Irish State’s shareholding in the Company will be reduced from approximately 17.5% to approximately 12.5%.
The Minister has also undertaken to not to sell further shares in the Company for the period of 90 calendar days following the completion of the Placing without the prior written consent. While this undertaking also applies to any sales through the Minister’s trading plan announced by way of Regulatory News Service on 21 December 2021, extended on 23 June 2022, 5 January 2023, 27 June 2023, 8 January 2024, 28 June 2024 and further extended with effect from 24 January 2025, it will only do so for the period of 30 calendar days following the completion of the Placing.
N.M. Rothschild & Sons Limited (“Rothschild & Co”) is acting as independent financial adviser and William Fry LLP and Allen Overy Shearman Sterling LLP are acting as legal counsel to the Department of Finance in connection with the Placing.
Details of the Placing Price and the exact number of Placing Shares will be announced in due course.
As referenced above, the Minister also announces that he has extended the AIB share trading plan for a further six-month term. The share trading plan will become operational again following the expiration of the applicable lock-up, and will now terminate no later than 23 July 2025 (unless further extended). The trading plan will continue to be managed by Merrill Lynch International. The trading plan will continue to include provisions that (a) the Minister’s intention is to target that up to, but no more than, 15% of the expected aggregate total trading volume in the Company is to be sold over the duration of the trading plan, and (b) shares may not be sold under the trading plan below a price per share that the Department of Finance determines represents fair value and delivers best value for the taxpayer throughout the term of the trading plan. The actual number of shares sold will depend on market conditions, among other factors. Proceeds generated from the latest phase of the AIB trading plan amount to approximately €628.2 million. In total, approximately €2.1 billion has been raised from the AIB trading plan since it became operational in January 2022.
