£1.2 billion worth of shares in the group, which narrowed taxpayer ownership in the group from 50.6 per cent to 48.1 per cent. In a statement to the stock market on last week, the sale was described by the Treasury as an “important landmark”, following its off-market sale of 550 million shares at Friday’s (25 March) closing price of 220.5p.
However, the share purchase price means a substantial loss has been incurred by the taxpayer, which bought a share at an average of 500p back in 2008. Commenting on the decision, John Glen, the Economic Secretary to the Treasury said: “This sale means that the government is no longer the majority owner of NatWest Group and is therefore an important landmark in our plan to return the bank to the private sector. We will continue to prioritise delivering value for money for the taxpayer as we take forward this plan.”
NatWest Group’s chief executive Alison Rose hailed the firm’s return to majority private ownership. “Reducing government ownership below 50% is an important milestone for NatWest and a further demonstration of the progress we are making,” she said. Previously, the government intended to sell its entire public stake in the banking holding company by 2023-24, but these plans were delayed as a result of the pandemic.
