31st May 2024 09:05
(Alliance News) - The UK government has sold GBP1.24 billion in NatWest shares back to the company, the Treasury and the bank said in separate statements on Friday morning.
The Treasury sold 392.4 million shares, a 4.5% stake, back to NatWest at 316.2p each, and as a result the government's stake will be cut to 22.50% from 25.98%. NatWest shares were trading 0.2% higher at 316.78p each early Friday in London. It has a GBP27.65 billion market capitalisation.
NatWest said it plans to cancel 222.4 million of the shares and hold the remainder in treasury. The new percentage holding for the UK government takes into account this cancellation of most the shares and retention in treasury of the remainder.
NatWest separately said on Friday that the UK government had sold 84.1 million shares since mid-May as part of its ongoing trading plan, reducing its stake to the 25.98% from 26.95%.
Edinburgh-based NatWest was nationalised in 2008 and 2009, with several multibillion-pound bailouts leaving the UK taxpayer with an 84% stake in the company, which at the time was known as the RBS Group. The government since has been progressively reducing its stake by means of market sales and buybacks by NatWest.
UK Chancellor Jeremy Hunt recently revealed plans to start selling the government's remaining stake to retail investors starting as early as this summer, but this plan was put in doubt by the calling of a general election for July 4.
NatWest said the share buyback will be broadly neutral for tangible net value. It continues to target a CET1 ratio, a measure of financial strength, of 13% to 14%.
"This transaction represents another important milestone for NatWest Group, building on recent momentum in the reduction of HM Treasury's stake in the bank," said NatWest Chief Executive Officer Paul Thwaite.
"We believe it is a positive use of capital for the bank and for our shareholders and represents further progress against the ambition to return NatWest Group to full private ownership."
By Tom Waite, Alliance News editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Related Shares:
Natwest