Written answers

Wednesday, 1 May 2013

Department of Finance

State Banking Sector

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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79. To ask the Minister for Finance the impact on the percentage of the company owned by the State that the payment by AIB of the €280m dividend preference share dividend due to the State in the form of additional ordinary shares; and if he will make a statement on the matter. [20548/13]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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Allied Irish Banks (AIB) announced on 24 April 2013 that the annual cash dividend of €280 million on the €3.5 billion 2009 Non Cumulative Preference Shares held by the National Pensions Reserve Fund Commission (NPRFC) on behalf of the Irish State, due 13 May 2013 will not be paid. As a result AIB becomes obliged to issue and allot ordinary shares to the NPRFC in accordance with the Bank's Articles of Association. The number of Bonus Shares to be issued will be calculated by dividing the unpaid dividend amount of €280m on the 2009 Preference Shares by the average price on an ordinary share over the period of thirty days trading immediately preceding the annual dividend date. The final amount of Bonus Issue of ordinary shares will therefore be announced in due course. However as the Irish State, through the NPRFC already own 99.8% of the ordinary shares of AIB, the increase in ownership as a result of these new bonus shares is likely to be marginal.

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