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(Alliance News) - UK Government Investments Ltd on Monday said it sold GBP1.26 billion in NatWest Group PLC shares back to NatWest, reducing its stake to 39% from 41% and halved from a holding of more than 80% at one point.
The UK government said it sold 469.2 million shares, priced at 268.4p each, back to the Edinburgh, Scotland-based lender as part of a buyback agreement first put in place with NatWest back in 2019. The sale was worth GBP1.26 billion in total.
As a result, the UK taxpayer's stake in NatWest will fall to 38.6% from 41.4%. Settlement of the off-market sale will be on Wednesday.
"UKGI and HM Treasury will keep other disposal options under active consideration, including by way of accelerated bookbuilds, when market conditions permit," the UK government noted.
NatWest said that it intends to cancel 336.2 million of the shares and hold the remaining 133.0 million shares in treasury.
"Holding ordinary shares as treasury shares gives the company the ability to cancel or re-issue such ordinary shares at a later date, quickly and cost effectively, and may provide the company with additional flexibility in the management of its capital base, including the allotment of ordinary shares in relation to its employee share plans," NatWest explained.
The UK government first began building a majority stake in the bank from October 2008 during the financial crisis. The taxpayer ended up holding an 81% stake in the lender - called Royal Bank of Scotland Group PLC at the time - after a hefty GBP45.5 billion taxpayer bailout. This has been steadily reduced since.
Shares in NatWest were up 0.5% to 269.90 pence each in London on Monday morning. The bank has a market capitalisation of GBP25.58 billion.
By Sophie Rose, Alliance News reporter
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