AIB Group Plc, an Irish lending firm, has reached an agreement with the Minister for Finance involving an off-market purchase transaction totaling €500 million. This deal increases the State's receipts from AIB to €3 billion for the year and reduces the State's ownership in the bank to 22%, according to a company statement.
The transaction includes the acquisition of 91.83 million ordinary shares, each valued at €0.625, at a price of €5.445 per share, which aligns with the closing price on August 30 on Euronext Dublin. These shares represent approximately 3.8% of AIB's total issued share capital. The settlement of this off-market purchase is anticipated to occur on September 3.
Shareholders of AIB had previously sanctioned the Directed Buyback Contract with the Minister during the Annual General Meeting on May 6, 2021, with the contract being formalized on June 3, 2021. The latest renewal of shareholder authority for off-market purchases under the contract was granted at the Annual General Meeting on May 2, 2024.
AIB has received the necessary regulatory approval from the European Central Bank for this transaction. The bank plans to cancel the 91.83 million acquired ordinary shares, reducing its issued share capital to 2.33 billion ordinary shares, with no shares held in treasury.
Post-transaction, the Minister for Finance will hold approximately 22% of AIB's issued share capital. Additionally, the Minister possesses 271.17 million warrants to subscribe for ordinary shares, which, if exercised, would represent about 11.6% of the company's issued share capital.
