REG - AIB Group PLC - AIB Group plc announces Euro 500m directed buyback

AIBAnnouncement

02/09/2024 07:00

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RNS Number : 4545C  AIB Group PLC  02 September 2024

 

 2 September 2024

 

AIB GROUP PLC ANNOUNCES €500 MILLION DIRECTED BUYBACK

 

Off market purchase of 91,827,364 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 €500 million of 91,827,364
ordinary shares of €0.625 each in the capital of AIB ("Ordinary Shares") at
a price of €5.445 per Ordinary Share, being the closing price of the
Ordinary Shares on 30 August 2024 on Euronext Dublin ("Off-Market Purchase").

 

The purchased Ordinary Shares represent approximately 3.8 per cent of the
Company's issued share capital. The Off-Market Purchase is expected to settle
on 3 September 2024.

 

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 most recently renewed at
the Annual General Meeting held on 2 May 2024. Regulatory approval was
received from the European Central Bank.

 

AIB intends to cancel the 91,827,364 purchased Ordinary Shares.

 

Under Chapter 11 of the Irish 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.

Following completion of the Off-Market Purchase:

·    AIB will have in issue 2,328,692,340 Ordinary Shares. AIB has no
shares held in treasury;

·    the Minister will own approximately 22 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, approximately 11.6 per cent of the
Company's issued share capital.

 

Colin Hunt, Chief Executive Officer, commented: "We are very pleased to return
an additional €500 million to the State after reaching an agreement with the
Minister for Finance to buy back a further tranche of AIB shares. This brings
payments to the State to €3 billion so far this year, with the State's
shareholding falling to 22%. The 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. Following a very strong first
half and with momentum in our business, AIB continues to support our 3.3
million customers, our communities and the wider economy while delivering
attractive, sustainable returns for our shareholders."

 

-Ends-

 

 

For further information please contact:

 

 Donal Galvin                  Niamh Hore                        Paddy McDonnell
 Chief Financial Officer       Head of Group 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 Principal Risks on pages 27 to 30 of the Annual Financial Report
2023 and updated on page 32 of the 2024 Half-Year Financial Report. In
addition to matters relating to the Group's business, future performance will
be impacted by (i) the Group's ability along with governments and other
stakeholders to measure, manage and mitigate the impacts of climate change
effectively, (ii) the impacts of inflation and (iii) Irish, UK and wider
European and global economic and financial market considerations. Future
performance could also be impacted by the direct and indirect consequences of
conflicts in the Middle East and Ukraine. 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 27 to 30 of the
Annual Financial Report 2023 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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