Minister Donohoe welcomes completion of €1.2 billion share buyback transaction with AIB
- Foilsithe:
- An t-eolas is déanaí: 8 Bealtaine 2025
Further to the previous announcement on 31 March 2025, The Minister for Finance, Paschal Donohoe, today welcomes the completion of what will be the final share buyback transaction with AIB Group Plc (“AIB” or the “Company”). This transaction, which received shareholder approval at AIB’s recent annual General Meeting, sees the Company acquire €1.2 billion of its shares from the State by way of an off-market purchase at a price of €6.2607 per share.
In welcoming the completion of this transaction, Minister Donohoe commented:
“The completion of this share buyback transaction with AIB is a very important step for both the Company and the State as it has resulted in our shareholding in AIB reducing to 3.3% while recovering a further €1.2 billion from our investment in the Company.
"When combined with the latest annual dividend of c. €100 million to be received on Friday, the total amount returned to the State from our investment in AIB will reach €19.2 billion with our remaining shareholding currently worth approximately €500 million. The proceeds from this transaction will be held within the Irish Strategic Investment Fund and will ultimately be used to benefit the State.
"On an overall basis, based off current market prices, the State is c. €300 million above break-even on its €29.4 billion investment in AIB, Bank of Ireland and PTSB.
"It is important to note the progress which has been made in reducing the State’s shareholding in AIB from 99.8% prior to the IPO of the bank in 2017 to 3.3% today. The State is now no longer the largest shareholder in AIB and through the share trading plan, which continues to be operational, our shareholding will continue to reduce with a clear path to exiting our position in the Company over the coming months.
"The State also holds warrants in AIB which were issued shortly after the IPO of the bank in 2017. Department of Finance officials have commenced preliminary discussions with AIB around the bank purchasing these warrants back from the State.”
The Department of Finance was advised by William Fry LLP in relation to this transaction.