3 May
2024
AIB
Group plc
Off
market purchase of 198,233,951
Ordinary Shares from the Minister for Finance
("Minister")
AIB
Group plc ("AIB"
or the "Company")
has agreed with the Minister to make an off-market purchase for a
total consideration of €998,999,996 of 198,233,951 ordinary shares
of €0.625 each in the capital of AIB ("Ordinary
Shares")
owned by the Minister at a price of €5.0395 per Ordinary Share
("Off-Market
Purchase").
The
purchased Ordinary Shares represent approximately 7.6 per cent of
the Company's issued share capital. The Off-Market Purchase is
expected to settle on 8 May 2024.
A
share purchase deed ("Buyback
Contract")
between AIB and the Minister was approved by the shareholders of
AIB at the extraordinary general meeting held on 2 May 2024 and
signed on the same day. The Off-Market Purchase has been approved
(i) by the European Central Bank and (ii) as a related party
transaction by shareholders of AIB pursuant to Chapter 11 of the
Irish Listing Rules and Chapter 11 of the UK Listing Rules and
otherwise in accordance with the requirements of the Irish
Companies Act 2014.
AIB
intends to cancel the 198,233,951 purchased Ordinary
Shares.
Following
completion of the Off-Market Purchase:
- AIB
will have in issue 2,420,519,704 Ordinary Shares. AIB has no shares
held in treasury;
- the
Minister will own approximately 32.6 per cent of AIB's issued share
capital; and
-
the Minister will hold 271,166,685 warrants to subscribe for
Ordinary Shares, representing, if exercised, 11.2% of the Company's
issued share capital.
The
Off-Market Purchase will help contribute to AIB's return to full
private ownership through the use of AIB's excess capital and will
not impact the ability of the Company to make further off-market
purchases under the authorities granted to the Company to
repurchase Ordinary Shares at the Company's 2024 annual general
meeting.
Colin
Hunt, Chief Executive Officer, commented: "We
are very pleased to return c. €1 billion to the State after
reaching agreement with the Minister for Finance to buy back a
further tranche of AIB shares, reducing the State's shareholding to
32.6%. This transaction is another important milestone in the
process of repaying the taxpayer for their support, enhancing
liquidity in AIB shares and normalising the share register. Having
reported a very strong first quarter performance, we are
well-positioned to generate sustainable profits, deliver attractive
shareholder returns and support our 3.3 million customers and the
wider economy.''
***
Contact
Details:
Donal
Galvin
Niamh
Hore
Paddy
McDonnell
Chief
Financial Officer
Head of Investor Relations
Head of Media Relations
Tel:
+353-1-6418300
Tel:
353-86-3135647
Tel: +353-87-7390743
email:
donal.j.galvin@aib.ie
email: niamh.a.hore@aib.ie
email: paddy.x.mcdonnell@aib.ie
Forward
Looking Statements
This
document contains certain forward looking statements with respect
to the financial condition, results of operations and business of
AIB and certain of the plans and objectives of the AIB Group. These
forward looking statements can be identified by the fact that they
do not relate only to historical or current facts. Forward looking
statements sometimes use words such as 'aim', 'anticipate',
'target', 'expect', 'estimate', 'intend', 'plan', 'goal',
'believe', 'may', 'could', 'will', 'seek', 'continue', 'should',
'assume', or other words of similar meaning. Examples of forward
looking statements include, among others, statements regarding the
AIB Group's future financial position, capital structure,
Government shareholding in the AIB Group, income growth, loan
losses, business strategy, projected costs, capital ratios,
estimates of capital expenditures, and plans and objectives for
future operations. Because such statements are inherently subject
to risks and uncertainties, actual results may differ materially
from those expressed or implied by such forward looking
information. By their nature, forward looking statements involve
risk and uncertainty because they relate to events and depend
on circumstances that will occur in the future. There are a
number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these
forward looking statements. These are set out in the principal
risks on pages 27 to 30 in the 2023 Annual Financial Report. In
addition to matters relating to the AIB Group's business, future
performance will be impacted by the AIB Group's ability along with
governments and other stakeholders to measure, manage and mitigate
the impacts of climate change effectively, the impact of
higher inflation on customer sentiment and by Irish, UK and
wider European and global economic and financial market
considerations. Future performance will further be impacted
by the direct and indirect consequences of the Russia-Ukraine
War on European and global macroeconomic conditions. Any forward
looking statements made by or on behalf of the AIB Group speak
only as of the date they are made. The AIB Group cautions that the
list of important factors on pages 27 to 30 of the 2023
Annual Financial Report is not exhaustive. Investors and others
should carefully consider the foregoing factors and other
uncertainties and events when making an investment decision based
on any forward looking statement.
