(Bloomberg) -- Ireland’s AIB Group Plc agreed a share buyback of €500 million ($553 million) with the country’s finance ministry Monday, according to a statement by the lender.
That means the state’s holding in the bank has been reduced to approximately 22%, down from the 71% it held at the beginning of 2022 having taken a stake during the financial crisis. The buyback brings the total amount returned to the state so far this year to €3 billion.
“The transaction is another important milestone in the process of repaying the taxpayer for their support, enhancing liquidity in AIB shares and normalizing the share register,” the bank’s chief executive officer Colin Hunt said in the statement.
The purchase represents about 3.8% of the company’s issued share capital, at a final price of €5.445 per ordinary share. The price achieved on the transaction represents the highest AIB closing price since February 2018, according to a statement by the finance ministry.
It is an illustration of the country’s post-crash recovery. The state that was once forced to rescue several lenders with a €64 billion injection during the financial crisis has in the past year established a sovereign wealth fund.
“The proceeds from this transaction will be held within the Irish Strategic Investment Fund while I examine how best to use them for the benefit of the state,” finance minister Jack Chambers said in the statement. “I will continue to assess additional opportunities for share sales as they arise.”
--With assistance from Dayana Mustak.
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