The government is aiming to secure a buyer for shares in Natwest worth up to £1.1bn, amounting to 5%, as it continues its sell-off of the bank rescued over ten years ago.
580m shares in the FTSE 100 bank were being offered to institutional investors as part of a placing that would bring the government’s holding down to 54.8%.
At early morning trading the Natwest share price is down, as the news emerged yesterday via Sky News.
From the perspective of taxpayers, the deal comes at a loss of around £670m, with the shares nearly 40% below the value paid by the government for the bank then known as the Royal Bank of Scotland.
The government’s stake initially stood at 83%, however it has been gradually reduced over time. Most recently in March when the UK Treasury has announced it has finalised the sale of £1.1bn worth of shares back to Natwest.
Depending on the state of the market, the Treasury will seek to divest the remainder of its shares in the bank by March 2026, The Times reported.
