Disposal of approximately 5% of AIB Group plc
Further to the announcement on 26 June 2024, the Minister for Finance, Jack Chambers TD announces the successful completion of the disposal of part of the Irish State’s shareholding in AIB Group plc (the “Company”). The disposal was effected by way of a placing (the “Placing”) of shares (the “Placing Shares”) in an accelerated book building process to institutional investors.
In summary, following settlement of the Placing which will take place on or before 1 July 2024:
- The shareholding of the Irish State will be reduced from 738.3 million ordinary shares, representing approximately 30.5% of the ordinary share capital of the Company, to 617.3 million ordinary shares, representing approximately 25.5 % of the ordinary share capital.
- Accordingly, the overall size of the State’s shareholding will be reduced by approximately 5.0%.
- The Placing price was €4.90 per share. As a result, the gross proceeds from the sale of the Placing Shares will be €592.9m. Upon settlement, this sum will be returned to the Ireland Strategic Investment Fund pending further consideration by the Minister.
- BofA Securities, Citi and Morgan Stanley acted as Joint Bookrunners in connection with the Placing.
- The Minister for Finance has undertaken to the Joint Bookrunners not to sell further shares in the Company for the period of 90 calendar days following the completion of the Placing without the prior written consent of the Joint Bookrunners. While this undertaking also applies to any sales through the Minister’s trading plan announced by way of Regulatory News Service on 21 December 2021, extended on 23 June 2022, 5 January 2023 and 27 June 2023, and further extended on 8 January 2024, it will only do so for the period of 30 calendar days following the completion of the Placing.
- The Minister also expects to extend the AIB share trading plan managed by Merrill Lynch International (“MLI”) for a further six-month term in the coming days. Following the extension, which would come into effect following the expiration of the 30-day period referred to above, the trading plan would terminate no later than 23 January 2025 (unless further extended). The trading plan would continue to include provisions that (a) the Minister’s intention is to target that up to, but no more than, 15% of the expected aggregate total trading volume in the Company’s shares is to be sold over the duration of the trading plan, and (b) shares may not be sold under the trading plan below a certain price per share, which the Department of Finance has determined represents fair value and delivers best value for the taxpayer throughout the term of the trading plan. The actual number of shares sold will depend on market conditions, among other factors. Proceeds generated from the latest phase of the AIB trading plan amount to approximately €617 million. In total, approximately €1.45bn has been raised from the AIB trading plan since it became operational in January 2022.
- N.M. Rothschild & Sons Limited (“Rothschild & Co”) is acting as independent financial adviser and William Fry LLP and Allen Overy Shearman Sterling LLP are acting as legal counsel to the Department of Finance in connection with the sale.
