William Fry advised State on latest AIB deal
William Fry LLP has advised the Department of Finance on the successful completion of a €1.2 billion share-buyback deal with AIB Group.
The transaction involved AIB buying €1.2 billion of its shares from the State by way of an off-market purchase at a price of €6.2607 per share.
The deal will reduce the State's shareholding in AIB to 3.3% and recover another €1.2 billion for the State from its investment in the bank.
Minister for Finance Paschal Donohoe has said that, along with an annual dividend of €100 million to be received shortly, the total returned to the State from its investment in AIB will reach €19.2 billion, with the remaining shares worth around €500 million.
The State put almost €21 billion into the bank at the time of the banking and financial crisis.
State exit
The State’s stake in AIB had been 99.8% before the banking group’s IPO (initial public offering) on the stock market in 2017.
The State’s holding in AIB will continue to fall through an ongoing share-trading plan, with a clear path for the State to exit 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, advising on a range of sale structures.
“The successful completion of this share buyback marks another significant milestone in the State’s ongoing strategy to exit its shareholding in AIB," said William Fry’s Mark Talbot, the lead partner on the deal.
McCann FitzGerald advised AIB Group on the transaction.