Shares sale

Treasury to cut stake in NatWest (RBS) to 40%

RBS banknote

The Treasury holding in the bank will fall

The taxpayers’ shareholding in NatWest (RBS) Group is to be cut further after the Government announced plans to offload a stake of up to 15%, which would see its total share fall to about 40%. 

Taxpayers’ UKGI which oversees the holding said the sale will take place over 12 months beginning no earlier than 12 August.

The government took a majority stake in what was then Royal Bank of Scotland in 2008 when it faced the prospect of collapse. Since then there have been a number of share sales, all at a loss.

Under the new trading plan, Morgan Stanley will have discretion to effect a measured and orderly sell down of shares in the bank on behalf of the Treasury

UKGI and the Treasury say they will keep other disposal options open, including by way of directed buybacks and/or accelerated bookbuilds.

The decision to launch the Trading Plan does not preclude the Treasury from executing such other disposals that achieve value for money for taxpayers, including during the term of the trading plan.  

The Treasury currently owns 6,338,753,194 ordinary shares in NatWest (RBS), which represents approximately 54.7% of voting rights in the company.

Goldman Sachs International is acting as privatisation adviser to UKGI. Freshfields Bruckhaus Deringer is acting as legal counsel to UKGI in respect of English and US law.

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