The government has raised an additional £1.24 billion by selling another portion of its stake in NatWest back to the bank.
This transaction reduces the state's shareholding to 22.5 percent, advancing its goal of fully exiting NatWest by 2026. The sale follows a postponed retail offering of NatWest shares due to Rishi Sunak's decision to call a snap general election. Chancellor Jeremy Hunt had aimed to replicate the public sale model used in the “Tell Sid” privatisation of British Gas under Margaret Thatcher in 1986.
The plan was to offer a portion of the taxpayer's stake in NatWest to the public for the first time since its £45.5 billion bailout during the 2007-09 financial crisis. Advisors were prepared to initiate this process in June. NatWest CEO Paul Thwaite described the sale as “another important milestone.” The transaction involved selling 392 million shares, or 4.5 percent of NatWest, to the bank at a price of 316.2p per share.
As with previous sales since the government began reducing its stake in 2015, this sale resulted in a loss to taxpayers. Initially owning 84.9 percent of the bank post-bailout, the state has reduced its holding through three methods: directed buybacks, a trading plan for gradually selling shares in the stock market, and institutional sales, the latter of which cannot occur before an election due to requiring ministerial approval. NatWest’s shares fell by 1.25p, or 0.4 percent, closing at 315p.
