The Irish government, through the Minister for Finance, Jack Chambers TD, has welcomed the completion of a €500 million share buyback transaction between AIB Group Plc (AIB) and the State.
This latest transaction is part of the ongoing efforts to reduce the State’s shareholding in AIB and return taxpayer funds that were used to support the banking sector during the financial crisis. The State’s shareholding in AIB has now been reduced from 24.88% to 22.04%, with a total of €16.6 billion returned to the government so far.
Minister Chambers commented, “The completion of this share buyback transaction with AIB is a further positive step for both AIB and the State. It continues to be this Government’s belief that banking should be primarily provided by the private sector, and that taxpayer funds used to support the banking sector should be recovered and put to more productive uses, such as enhanced delivery of public services and addressing challenges in areas like housing and public infrastructure.”
The transaction was executed at a final price of €5.445 per share, representing the highest AIB closing price since February 2018. The proceeds from the sale will be held within the Irish Strategic Investment Fund while the government examines the best way to utilize the funds for the benefit of the Irish people.
The Department of Finance was advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to this transaction.