The transaction confirms the cancellation by the Minister for Finance of c. 271 million warrants (the “Warrants”) in AIB representing c. 12.7% of AIB’s total issued share capital (the “Transaction”), for a consideration of €390m.
The Minister had the right to exercise the Warrants by paying to AIB in cash, the exercise price (€6.752) for the outstanding warrants. In line with Government policy for the State to not be a long-term investor in banks, the Minister has agreed to cancel the AIB Warrants which were issued to the Minister as part of the AIB IPO in 2017.
In welcoming the completion of this transaction, Minister Donohoe commented:
“The completion of this Warrants cancellation transaction with AIB is a very important step for both the Company and the State. It is the final transaction with AIB and results in a further €390m recovered from our investment in the Company.
“When combined with the c. €19.8bn already returned to the State, the total amount returned from our investment in AIB will reach €20.2bn. The proceeds from this transaction will be held within the Exchequer and will ultimately be used to benefit the State.”
The Department of Finance was advised by N.M. Rothschild & Sons Limited and William Fry LLP in relation to this transaction.
