REG - AIB Group PLC - Transaction in Own Shares

AIBAnnouncement

25/04/2023 07:00

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RNS Number : 2974X  AIB Group PLC  25 April 2023

 

     25 April 2023

 

AIB Group plc announces €215 million directed buyback

 

Off market purchase of 54,674,818 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 €215,309,433 of 54,674,818
ordinary shares of €0.625 each in the capital of AIB ("Ordinary Shares") at
a price of €3.938 per Ordinary Share, being yesterday's closing price of the
Ordinary Shares on Euronext Dublin ("Off-Market Purchase").

 

The purchased Ordinary Shares represent approximately 2.05 per cent of the
Company's issued share capital. The Off-Market Purchase is expected to settle
on 26 April 2023.

 

A contract ("Directed Buyback Contract") between AIB and the Minister was
approved by the shareholders of AIB at the Annual General Meeting held on 6
May 2021 and signed on 3 June 2021. The authority from shareholders to make
off-market purchases of Ordinary Shares from the Minister (or its nominee)
under the terms of the Directed Buyback Contract was renewed at the Annual
General Meeting on 5 May 2022. The Off-Market Purchase has been approved by
the European Central Bank.

 

AIB intends to cancel the 54,674,818 purchased Ordinary Shares.

 

Under Chapter 11 of the Irish Listing Rules and Chapter 11 of the UK Listing
Rules, the Directed Buyback Contract constitutes a related party transaction.
However, the Off-Market Purchase is treated as a smaller related party
transaction under Irish Listing Rule 11.1.15 and UK Listing Rule 11.1.10R.

Following completion of the Off-Market Purchase:

·    AIB will have in issue 2,618,753,655 Ordinary Shares (excluding
treasury shares); and

·    The Minister will own approximately 53.35 per cent of AIB's issued
share capital (excluding treasury shares).

Based on AIB's capital position at 31 December 2022, AIB's fully-loaded CET1
ratio will be reduced by approximately 40 basis points to 15.9% from the
reported 16.3%.

Colin Hunt, Chief Executive Officer, commented:

"I am pleased to announce that AIB Group has agreed with the Minister for
Finance to undertake a directed buyback of shares. In 2022, AIB Group returned
over €1bn to the State and today's agreement will generate a further €215m
for the Irish taxpayer. It is another positive development towards normalising
our share register and enhancing shareholder value for all investors."

 

 

 

- ENDS -

 

 

For further information, please contact:

 

 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 Group and
certain of the plans and objectives of the 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 Group's future
financial position, capital structure, Government shareholding in the 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 23 to 25 in the 2022 Annual Financial
Report. In addition to matters relating to the Group's business, future
performance will be impacted by the 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 and any enduring effects of the COVID-19 pandemic.
Any forward looking statements made by or on behalf of the Group speak only as
of the date they are made. The Group cautions that the list of important
factors on pages 23 to 25 of the 2022 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.

 

 

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