REG - AIB Group PLC - Transaction in Own Shares

AIBAnnouncement

03/05/2024 07:00

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RNS Number : 0914N  AIB Group PLC  03 May 2024

 

 

 

 

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.

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