British government is planning to sell 50% of its stake in Royal Bank of Scotland (RBS), worth £16bn ($25bn), in the next two years.
The first sale could be expected by September 2015, Reuters reported citing sources familiar with the development.
UK’s finance minister George Osborne revealed in June 2015 his plans to start selling the government’s £32bn stake in RBS over the coming months.
However, an aggressive plan for Britain’s privatization implies that the shares will be sold at a faster rate than earlier projected. This could result in the government facing a substantial loss on the initial sales.
Previously, Osborne was reluctant to sell RBS shares at a loss, but the bank’s improving performance has persuaded him that it is ideal time to sell.
However, progress on the sales process will be made on the basis of RBS’s performance, market conditions as well as ongoing probe into past misconduct.