Government extends plan to sell stake in NatWest
It now has until August 2025 to complete its ‘trading plan’, which involves disposing of up to 15% of NatWest’s total shares to other investors.
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Your support makes all the difference.The Treasury has extended a plan to sell shares in NatWest for another two years after global jitters in the banking sector sent share prices tumbling.
The Government will now have until August 11 2025 to complete its “trading plan”, which involves disposing of up to 15% of NatWest’s total shares to other investors.
The Treasury and UK Government Investments, which manages the shares for the Government, said they will not sell shares at an unfair price.
“Shares may not be sold under the trading plan below a price per share that UKGI and HM Treasury determine represents fair value and delivers value for money for the taxpayer throughout the term of the trading plan,” they said in a statement on Monday.
UKGI and HM Treasury will keep other disposal options under active consideration
The Government has been slowly selling off the majority stake that it took in NatWest Group – then named the Royal Bank of Scotland Group – during the 2008 financial crisis.
But it has been far from able to recoup the money that it put in to save the struggling bank during the crisis.
The Government bought its stake for 502 pence per share. Before markets opened on Monday shares in NatWest were worth around 263 pence.
So far the Government’s trading plan has netted the Treasury around £3.7 billion by selling off the shares. It has also sold off shares through other means but still owns around 41.5% of the bank.
It said: “UKGI and HM Treasury will keep other disposal options under active consideration, including by way of directed buybacks and/or accelerated bookbuilds when market conditions permit.
“The decision to extend the trading plan does not preclude HM Treasury from executing such other disposals that achieve value for money for taxpayers, including during the term of the trading plan.”