AIB Group PLC on Friday said it has agreed to buy back €999 million worth of shares from the Irish government.

The financial services company said it has agreed to buy back 198.2 million shares priced at €5.0395 each.

The shares represent 7.6% of its shares capital. The off-market purchase is expected to be settled on Wednesday next week.

Chief Executive Officer Colin Hunt commented: ‘We are very pleased to return c. €1 billion to the State after reaching agreement with the Minister for Finance to buy back a further tranche of AIB shares, reducing the State’s shareholding to 32.6%. This transaction is another important milestone in the process of repaying the taxpayer for their support, enhancing liquidity in AIB shares and normalising the share register.’

Shares in AIB closed down 0.9% to 421.50 pence each in London on Friday.

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