New share buyback to cut State’s stake in AIB to 53.35%

April 26, 2023

The Minister for Finance has taken part in AIB Group’s 2023 share buyback programme on a directed basis, which will further reduce the State’s shareholding in the bank.

The buyback will see AIB purchase €215m of its shares from the State by way of an off-market purchase. This represents 54,674,818 shares or 2.05% of the bank’s issued share capital.

The buyback will be in addition to the payment of a proposed €166m cash dividend to all shareholders by the bank.

Unlike last year’s share buyback programme, where the State participated on a proportionate basis, AIB will buy the full €215m of shares from the State.

This will result in the State’s shareholding in AIB reducing by a further 1% to about 53.35%.

The buyback was completed at a price of €3.938 per share – the bank’s closing price on Euronext Dublin on April 24.

Colin Hunt, AIB’s chief executive, said he was pleased to announce that the bank has agreed with the Minister for Finance to undertake a directed buyback of shares.

“In 2022, AIB Group returned over €1 billion to the State and today’s agreement will generate a further €215m for the Irish taxpayer,” Mr Hunt said.

“It is another positive development towards normalising our share register and enhancing shareholder value for all investors,” he added.

The Minister for Finance Michael McGrath said that given the strong rise in AIB’s share price over the past year, he has agreed to participate in its latest buyback programme on a directed basis.

“This will be another positive step for both AIB and the State, with our shareholding reducing further and recovering an additional €215m from our investment in AIB,” Michael McGrath said.

“This will be another positive step for both AIB and the State, with our shareholding reducing further and recovering an additional €215m from our investment in AIB,” Michael McGrath said.

“When combined with the annual dividend already announced, the State expects to receive a total of approximately €306m from the company, which will be paid to the exchequer, bringing to about €12 billion the total amount returned to the State since 2010,” he said.

“After this transaction the State retains a shareholding in AIB of about 53.4% currently worth approximately €5.5 billion. I will continue to monitor market conditions for further opportunities to reduce the State’s shareholding in AIB,” he added.

Article Source – New share buyback to cut State’s stake in AIB to 53.35% – RTE.ie

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