State agrees in principle to AIB’s €1.2 billion share buyback proposal
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From: Department of Finance
- Published on: 31 March 2025
- Last updated on: 12 April 2025
The Minister for Finance Paschal Donohoe today announces that he has agreed in principle to AIB Group plc’s (the “Company” or “AIB”) latest share buyback proposal. The transaction, subject to shareholder approval and market conditions, will see the Company acquire €1.2 billion of its shares from the State by way of an off-market purchase. It is expected that the buyback will be completed shortly after AIB’s Annual General Meeting on 1 May 2025.
In announcing the State’s participation in the transaction, the Minister for Finance commented:
“As part of AIB's FY2024 annual results the bank announced that discussions were underway with the Department of Finance for a further €1.2 billion directed share buyback and I can now confirm that I have agreed in principle to participate in this buyback on a fully directed basis (subject to shareholder approval and market conditions). The successful completion of this transaction will see a further €1.2 billion returned to the State which will be in addition to the c. €100 million in dividends due to be received in May 2025 while also allowing the State to further reduce its shareholding in AIB and get closer to exiting its position in the bank. Further details in relation to this transaction will be announced in due course.”
The Department of Finance is being advised by William Fry LLP in relation to this transaction.
This buyback transaction has the potential to reduce the State’s shareholding by 8% to c. 3%.
Notes
The State currently has a shareholding in AIB of just under 12%, the successful completion of this transaction will result in our shareholding reducing by a further c. 8%. The AIB share trading plan continues to remain in operation also.