William Fry is pleased to announce that it has advised the Department of Finance on the successful completion of a €1.2bn directed share buyback transaction with AIB Group Plc (“AIB”).
The transaction involved AIB acquiring €1.2bn of its shares from the State by way of an off-market purchase at a price of €6.2607 per share.
The transaction will reduce the State’s shareholding in AIB to 3.3% and recover a further €1.2bn for the State from its investment in the bank. With the latest annual dividend of €100m to be received shortly, the total returned to the State from its investment in AIB will reach €19.2bn, and the remaining shares worth approximately €500m.
This deal further reduces the State’s shareholding in AIB from 99.8% before the bank’s IPO in 2017 to 3.3%. The State is no longer AIB’s largest shareholder, and its shareholding will continue to decrease through an ongoing share trading plan, with a clear path for the State to exist AIB as a shareholder in the coming months.
William Fry has acted as lead legal adviser to the Minister for Finance and Department of Finance on the sell-down of the State’s shareholding in AIB since its IPO in 2017. During this time, we have advised the Minister and the Department on a range of innovative sale structures.
The lead partner on this transaction was Mark Talbot, with the assistance of Corporate/M&A senior associate, Trish McGrath.
Mark Talbot commented:
We are delighted to be involved in this key transaction for the government and AIB. The successful completion of this share buyback marks another significant milestone in the State’s ongoing strategy to exit its shareholding in AIB.”