UK Government Investments (UKGI), which manages the government’s shareholding in NatWest, says it is aiming to sell shares over 12 months starting August 12 under a pre-arranged trading plan overseen by Morgan Stanley.
It plans to sell up to, but no more, than 15% of the total shares being traded on the market, which would further reduce the current 54.7% taxpayer holding in the bank.
Go deeper with GlobalData
UKGI and the Treasury say the government will also keep “other disposal options open” alongside the 12-month trading plan.
It comes soon after the government sold 580 million NatWest shares in May, raising £1.1bn for the taxpayer.
NatWest – formerly Royal Bank of Scotland (RBS) – has been majority-owned by the taxpayer since it was bailed out for £45.8bn in 2008 at the height of the financial crisis.
Taxpayer expected to make a loss of £38.8bn
The latest share sale announcement takes the government a step closer to ending its status as majority owner of the bank and its commitment to return NatWest to the private sector by 2025.
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.
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 GlobalDataThe government initially bought an 82% stake in the then RBS for 440p a share in 2008 to save the bank from complete collapse during the financial crisis.
According to recent estimates from the Office for Budget Responsibility, of the £45.8 billion spent to prop up the bank during the crisis, the taxpayer is expected to make a loss of £38.8bn.
March 2025 deadline pushed back
Last year, just as the coronavirus crisis struck the UK, the Treasury pushed back a deadline to sell the entire stake by a year, to March 2025, as a global sell-off saw stock markets around the globe collapse.
The Treasury also missed out on a dividend payment last year, due to regulators banning payouts by financial institutions during the height of the Covid-19 pandemic.
NatWest subsequently declared a dividend in 2021 of 3p a share, handing £225 million to the Government as the biggest shareholder.
