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In today's NWG meeting it is mentioned that Natwest intend to buy back 15% of Government owned shares.
In an article it has been mentioned:
"The government currently holds a stake of just under 30 per cent in Natwest, worth some £7.46bn."
It then says:
"Based on Natwest’s current market capitalisation, a 15 percentage point haircut would reduce the government’s stake by roughly £3.75bn."
Thats nearly 50% of government stake not 15%. Or have I got the wrong end of the stick?
https://www.cityam.com/natwest-shareholders-approve-proposal-to-buy-back-15-per-cent-of-governments-stake/
When on 16th of Feb. NatWest said that they are going to buy back £300M shares and that would be be equivalent to pay out 40p per share.
Now if they intend to buy back £3 Billion pounds worth of shares, with my elementary calculation that would be equivalent to £4 per share pay out.
So my advice would be sit back and hold tight, you are going to on a hell of a journey!
DYOR, All the best.
NWG bought back £1.3 billion worth of shares, just in the 2nd quarter of 2023. So I am assuming the dividend for this half year to be even higher than this time last year, since there are now less shares in circulation.
With record profits this half, not only dividends are lower but we are only spending £500 Million for the entire second half of 2023.
With 48% ownership in Savannah Resources Plc (LON:SAV), institutional investors have a lot riding on the business.
https://simplywall.st/stocks/gb/materials/aim-sav/savannah-resources-shares/news/with-48-ownership-in-savannah-resources-plc-lonsav-instituti
Assuming there is not going to be any major shocks in economy, the general opinion is that this may be the last interest rate rise for this year, or at worst just one more 0.25% rise. In deed some expressed an opinion that rates may well fall before end of the year.
My view is that the worst is over for borrowers and mortgage holders.
Global inflation likely to have peaked, key data indicators suggest.
https://www.ft.com/content/85498afc-43d3-4525-bee0-7ea7c6c05b34