Government offloads more NatWest shares, inching closer to full privatisation
Quote from VATcal on 13/05/2024, 19:50The UK government has sold another tranche of shares in NatWest, bringing it a step closer to its goal of full private ownership for the bank by 2025-2026. This latest sale reduces the government's stake in NatWest to around 26.95%, down from just under 27% previously.
The move follows a series of disposals over the past year, which saw the government's holding fall below 50% for the first time since the 2008 financial crisis. Back then, the government was forced to bail out the lender, then known as Royal Bank of Scotland, with a hefty £45.5 billion taxpayer injection. This resulted in a controlling stake of around 84%.
Chancellor Jeremy Hunt has pledged to fully exit the government's shareholding in NatWest. This latest sale paves the way for a potential public share offer this summer, aimed at encouraging wider retail investor participation in the UK stock market.
However, analysts warn that the success of such an offer will depend on an attractive price point for the shares. The government will need to find the right balance between recouping taxpayer funds and enticing individual investors to buy into NatWest.
This ongoing privatisation process marks a significant development for NatWest and the wider UK financial landscape. It remains to be seen whether the government can achieve its full exit strategy within the proposed timeframe, and how a potential public share offer will be received by retail investors.
The UK government has sold another tranche of shares in NatWest, bringing it a step closer to its goal of full private ownership for the bank by 2025-2026. This latest sale reduces the government's stake in NatWest to around 26.95%, down from just under 27% previously.
The move follows a series of disposals over the past year, which saw the government's holding fall below 50% for the first time since the 2008 financial crisis. Back then, the government was forced to bail out the lender, then known as Royal Bank of Scotland, with a hefty £45.5 billion taxpayer injection. This resulted in a controlling stake of around 84%.
Chancellor Jeremy Hunt has pledged to fully exit the government's shareholding in NatWest. This latest sale paves the way for a potential public share offer this summer, aimed at encouraging wider retail investor participation in the UK stock market.
However, analysts warn that the success of such an offer will depend on an attractive price point for the shares. The government will need to find the right balance between recouping taxpayer funds and enticing individual investors to buy into NatWest.
This ongoing privatisation process marks a significant development for NatWest and the wider UK financial landscape. It remains to be seen whether the government can achieve its full exit strategy within the proposed timeframe, and how a potential public share offer will be received by retail investors.
