State's shareholding in AIB falls to 3.3% following latest share buyback

AIB's latest directed share buyback totaling €1.2bn will see the State own just 3.3% of the lender's shares 
State's shareholding in AIB falls to 3.3% following latest share buyback

Latest agreement with the Minister for Finance follows a €500m directed buyback in September 2024 and a €1bn directed buyback in May 2024. 

AIB has agreed a €1.2bn directed share buyback with finance minister Paschal Donohoe.

Under the terms of the buyback, an off-market purchase of 191,671,857 ordinary shares in the bank will be made at a price of €6.2607 per share. 

After the completion of the deal, the State will own about 3.3% of AIB shares.

The buyback between AIB and the Minister for Finance was approved by the bank's shareholders at its AGM last week.

“We are very pleased to make a payment of an additional €1.2bn to the State through the buyback of a further tranche of AIB shares," said CEO Colin Hunt. 

"This agreement with the Minister for Finance follows a €500m directed buyback in September 2024 and a €1bn directed buyback in May 2024. 

"Today’s development represents another important milestone in the process of repaying the taxpayer for their support, the normalisation of the Group’s share register and enhancing liquidity in AIB shares."

During the bank bailouts following the financial crisis, the State invested about €21bn in AIB to rescue it. At the beginning of 2022, the Government held 71% of the bank.

The State is now no longer the largest shareholder in AIB and through the share trading plan, the its shareholding will continue to reduce with a "clear path" to exiting its position in the company over the coming months.

"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 €1.2bn from our investment in the Company," said finance minister Paschal Donohoe.

"When combined with the latest annual dividend of around €100m to be received on Friday, the total amount returned to the State from our investment in AIB will reach €19.2 bn, with our remaining shareholding currently worth approximately €500m," Mr Donohoe continued.

"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."

Mr Donohoe said that on an overall basis, based off current market prices, the State is about €300m above break-even on its €29.4 billion investment in AIB, Bank of Ireland and PTSB.

x

More in this section

The Business Hub

Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited