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(Adds loss realised and context)
LONDON, May 11 (Reuters) - The British government has
completed the sale of 1.1 billion pounds ($1.55 billion) in
shares of NatWest, lowering its stake to below 55% in
the lender it bailed out over a decade ago.
UK Government Investments (UKGI), the state-owned company
that controls the shares, said the they were priced at 190
pence, 4% below Monday's closing price of 197 pence.
NatWest has been majority state-owned following a 45
billion-pound bailout in 2008 during the financial crisis. The
sale crystallises a further hefty loss of around 1.8 billion for
taxpayers, with shares well below the 502 pence bailout level.
The move edges the bank closer to private ownership,
reducing the government's holding from 60% previously.
The government's last sale of stock to outside investors was
in 2018, although NatWest directly bought back 1.1 billion pound
of shares last month to reduce the state's holding from 62%.
NatWest shares fell around 4% in early trading to around the
latest sale price. They are also below the 2018 sale price of
271 pence a share.
The government said it continued to keep all options and
timings under review for future sales.
NatWest's stock price has more than doubled since hitting a
low of 90.5 pence in September, as optimism has built about
prospects for Britain's economic recovery from the COVID-19
pandemic.
NatWest, formerly Royal Bank of Scotland, has long argued it
is unrealistic to expect a profit on the bank's rescue, which
was needed to stabilise Britain's financial system.
The bookrunners on the sale were Barclays,
Citigroup, Goldman Sachs and Morgan Stanley.
Rothschild & Co is acting as adviser to UKGI.
Two months ago, Britain's financial regulator said it had
started a criminal action against NatWest over allegations it
failed to detect suspicious activity by a customer depositing
nearly 400 million pounds over five years, mostly in cash.
($1 = 0.7084 pounds)
(Reporting by Iain Withers; Editing by Rachel Armstrong, Jason
Neely and Pravin Char)
