Team Blitz India
LONDON: The UK Government has reduced its stake in Natwest to below 30 per cent, relinquishing its status as a controlling shareholder.
Natwest, previously known as the Royal Bank of Scotland, revealed in a stock market filing that the Treasury’s stake dropped to 29.82 per cent on March 22 as part of its daily trading plan.
This decrease below the 30 per cent threshold means the Treasury no longer holds the status of a “controlling shareholder,” freeing the government from additional legal and regulatory obligations, such as requiring two votes on director appointments. During the financial crisis in 2008, the Government had acquired an 84 per cent stake in Natwest to rescue it, paying £45.5 billion for the bailout at an average price of 502p per share. However, taxpayers have faced losses as Natwest’s share price has halved since then.
To date, the Treasury has recovered approximately £14.5 billion from its share sales, including £5.8 billion from its trading plan initiated in August 2021. The Government aims to fully privatise Natwest by 2026, intending to offer some of its remaining stake to individual investors, possibly starting in June, as part of broader efforts to strengthen UK capital markets.
Natwest is also permitted to repurchase its shares from the Treasury, having done so thrice since 2021, with the next opportunity for a transaction in May.
