The Government’s stake in NatWest has reduced to just over 11% after the banking giant bought back £1bn worth of State-owned shares. The lender said on Monday it had bought 263 million shares, at a price of 380.8p each.
The move has seen the Government’s stake in the lender reduce to around 11.4% from 14.81%, as at the end of October.
NatWest has now bought back £2.2bn of state-owned shares so far this year through two rounds of buybacks, which together with ongoing share sales by the Treasury, has helped slash the Government’s stake by more than two thirds since December last year.
It is the latest move in a nearly 20-year return towards private ownership after the lender, which was previously known as Royal Bank of Scotland, was rescued by the Government during the 2008 credit crunch.
"This transaction represents another important milestone on the path to full privatisation," chief executive Paul Thwaite said on Monday. "We believe it is a positive use of capital for the bank and for our shareholders."
In July, the Government's stake in NatWest dropped below 20% for the first time since its 2008 nationalisation. The Treasury has gradually reduced its equity holding in the lender, which counts Coutts among its subsidiaries.
Goldman Sachs International is acting as privatisation adviser, while Freshfields Bruckhaus Deringer LLP is legal counsel to º£½ÇÊÓƵGI in respect of English and US law. The trading plan is managed by Morgan Stanley & Co International.
