10th May 2021 17:35
(Alliance News) - The UK government on Monday said it intends to lower its stake further in blue chip lender NatWest Group PLC by selling shares through a placing.
UK Government Investments Ltd - which was set up by former UK Chancellor George Osborne to offload UK government-owned companies - will look to sell around 580 million shares, reducing its interest to 54.8% from 59.8%.
Shares in NatWest closed 1.5% lower at 197.05 pence on Monday in London. This would value the sale at around GBP1.14 billion if completed at Monday's closing price.
The final placing price and number of shares to be sold have not yet been disclosed.
Barclays Bank PLC, Citigroup Global Markets Ltd, Goldman Sachs International and Morgan Stanley & Co International PLC will act as joint bookrunners for the placing, which is expected to take place on Thursday.
In mid-March, the UK government had sold 590.7 million shares at a price of GBP1.12 billion, reducing its stake to 59.8% from 61.7%.
The UK government first began building its majority stake in the bank from October 2008 during the financial crisis as it looked to inject funds into the banking system.
As a result, the government ended up holding an 81% stake in the lender - called Royal Bank of Scotland Group PLC at the time - because of a hefty GBP45.5 billion bailout.
By Dayo Laniyan; [email protected]
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