State agrees in principle to AIB's €1.2bn share buyback proposal

The transaction could see the State's shareholding in the bank reduced from 12% to 3%

The State’s shareholding of AIB has decreased significantly in the last two years, falling from 71% at the beginning of 2022. PIC: Conor Ó Mearáin / Collins Photos

Minister for Finance Pascal Donohue has agreed in principle to AIB's latest share buyback proposal, under which the State could potentially reduce its shareholding to 3%.

The transaction, subject to shareholder approval and market conditions, will see the lender acquire €1.2bn of its shares from the State through an off-market purchase.