The Government of UK is set to sell more stake of Royal Bank of Scotland (RBS) in multibillion pound deal, Sky News reported citing bank sources.

Currently, the government holds nearly 71% stake in RBS, which was bailed out with taxpayers’ money during the financial crisis in 2008.

In the latest divestment, the government is expected to dispose around 10% stake in RBS against proceeds of more than £3bn.

Complete details of the potential deal are still unclear as it may be delayed due to market conditions and the respective minister’s concern regarding value for money.

If the transaction takes place, the government’s stake in RBS will decline to around 60%.

The divestment can be carried out following the approval of the Philip Hammond, the Chancellor of the Exchequer and consent from the UK Government Investments‎ (UKGI).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The UK government invested around £45.5bn into RBS during the financial crisis. Following the stabilisation of RBS, the government decided to divest its majority stake in the company.

Last November, the government announced its plans to again re-privatise RBS with the aim to sell shares valuing £15bn by 2023.

Besides RBS, the British government also bailed out Lloyds during the 2007-08 financial downturn. Last year, it relinquished all its interest in Lloyds by selling the remaining stake.