NatWest Group buys back £1.1bn of shares from Treasury
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Alison Rose, CEO of NatWest Group
NatWest Group has bought back £1.1 billion of shares, bringing the UK Government’s stake in the banking group down from 61.1% to 59.8%.
The Royal Bank of Scotland owner has agreed with HM Treasury to make an off-market purchase for the total consideration of £1,125,341,269.13 for 590,730,325 ordinary shares in the company with a nominal value of £1 each.
The sale was authorised by Chancellor Rishi Sunak and managed by UK Government Investments (UKGI).
NatWest Group intends to cancel 390,730,325 of the purchased Ordinary Shares and hold the remaining 200,000,000 Ordinary Shares in treasury.
Holding Ordinary Shares as treasury shares gives the company the ability to cancel such shares at a later date, or re-issue treasury shares quickly and cost-effectively, and may provide the company with additional flexibility in the management of its capital base, including the allotment of Ordinary Shares in relation to its employee share plans.
This morning, The Treasury said that the sale “represents an important step in the government’s plan to return institutions brought into public ownership as a result of the 2007-2008 financial crisis to private ownership”.
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