AIB Group Plc’s (“AIB”) announced as part of their H1 2024 financial results that they had received regulatory approval for a further €500m share buyback., The Minister for Finance, Jack Chambers TD, today welcomes the completion of that transaction which was done on a directed basis between AIB and the State. This transaction sees AIB acquire €500m of its shares from the State by way of an off-market purchase at a final price of €5.445 per share.
In welcoming the completion of this transaction, Minister Chambers commented:
“The completion of this share buyback transaction with AIB is a further positive step for both AIB and the State. It further normalises the relationship between both parties with the ultimate aim of getting the bank back into full private ownership. It continues to be this Government’s belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds which were used to support the banking sector should be recovered and put to more productive uses like enhanced delivery of public services and helping us to overcome many of the challenges we face now and into the future including areas like housing and public infrastructure.
The completion of this transaction has seen the State’s shareholding in AIB reduce from 24.88% to 22.04% while recovering another €500m from our investment in the bank. The price achieved on this transaction represents the highest AIB closing price since February 2018. The proceeds from this transaction will be held within the Irish Strategic Investment Fund while I examine how best to use them for the benefit of the State.
The total amount returned to the State from our investment in AIB has now reached c. €16.6bn.
Significant progress has been made in reducing our shareholding in AIB from c. 71% at the beginning of 2022 to 22.04% today. The State remains the largest shareholder in AIB and I will continue to assess additional opportunities for share sales as they arise.”
The Department of Finance was advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to this transaction.
