Minister McGrath welcomes completion of €999 million share buyback transaction with AIB
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From: Department of Finance
- Published on: 3 May 2024
- Last updated on: 12 April 2025
Further to the initial announcement on 3 April 2024, the Minister for Finance Michael McGrath today welcomes the completion of another share buyback transaction with AIB Group Plc (“AIB” or the “Company”). This transaction, which received shareholder approval at AIB’s recent EGM, sees the Company acquire €999 million of its shares from the State by way of an off-market purchase at a final price of €5.0395 per share.
In welcoming the completion of this transaction, Minister McGrath commented:
“The completion of this share buyback transaction with AIB is another positive step for both the Company and the State, and will reduce our shareholding in AIB to c. 32.6% while recovering another c. €1 billion from our investment in the Company.
"When combined with the latest annual dividend of c. €273 million to be received next week, the total amount returned to the State from our investment in AIB will reach c. €14.9 billion. 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.
"Significant progress has been made in reducing our shareholding in AIB from c. 71% at the beginning of 2022 to c. 32.6% today. While the State remains the largest shareholder in AIB, this is another important step in normalising the relationship between the State and AIB with the free float in the bank now increasing to c. 67.4%.
"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 use.
"The State still retains a valuable shareholding 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.