NatWest, raising £1.1 billion pounds ($1.55 billion) in the process. With shares well below the 502 pence bailout level, the move crystallised a rather hefty loss of around £1.8 billion for taxpayers.
Following a 45 billion-pound bailout during the financial crisis in 2008, UK taxpayers have been holding a majority stake in NatWest. However, the recent sale reduced the government’s holding by 5 per cent to 54.8 per cent, edging the bank closer to private ownership.
Although, NatWest directly bought back stocks worth £1.1 billion last month, however, the government’s previous sale of shares to outside investors was back in 2018.
According to the Treasury, the sale this week was completed by way of an overnight sale via an accelerated book build, a competitive market facing process that involves selling shares to institutional investors.”
As optimism grows over the prospects of Britain’s economic recovery from the COVID-19 pandemic, NatWest’s stock price has more than doubled after hitting a low of 90.5 pence in September. The government noted that it would continue to keep all options and continue to review timings for future sales.
