The transaction, subject to shareholder approval and market conditions, will see the Company acquire €1.2bn of its shares from the State by way of an off-market purchase. It is expected that the buyback will be completed shortly after AIB’s Annual General Meeting on 1st May 2025.
In announcing the State’s participation in the transaction, the Minister for Finance commented:
“As part of AIB's FY2024 annual results the bank announced that discussions were underway with the Department of Finance for a further €1.2bn directed share buyback and I can now confirm that I have agreed in principle to participate in this buyback on a fully directed basis (subject to shareholder approval and market conditions). The successful completion of this transaction will see a further €1.2bn returned to the State which will be in addition to the c. €100m in dividends due to be received in May 2025 while also allowing the State to further reduce its shareholding in AIB and get closer to exiting its position in the bank. Further details in relation to this transaction will be announced in due course.”
The Department of Finance is being advised by William Fry LLP in relation to this transaction.
This buyback transaction has the potential to reduce the State’s shareholding by 8% to c. 3%.
