The NatWest Group’s stake held by the government has fallen below 30% for the first time since it received a taxpayer bailout in 2008. The Treasury has recently announced the sale of 1.16% of its shares in the bank, resulting in a decrease in its holding to 29.82% as part of an ongoing trading plan.
This reduction in ownership is not expected to have a significant impact on the bank’s relationship with the government. However, it does mean that the state will no longer be considered a ‘controlling shareholder’ under listing rules. Consequently, the bank will no longer require two votes on the appointment of its directors in the future.
A spokesperson for NatWest Group has expressed gratitude for the government’s ongoing commitment to returning the bank to private ownership. With the government’s shareholding now below 30%, they believe that progress is being made towards achieving this goal, which they view as being in the best interests of the bank and its shareholders.
During the Spring Budget, Chancellor Jeremy Hunt confirmed the government’s intention to fully privatise NatWest by 2025-26. This plan includes a share sale to the public, expected to take place as early as this summer, with hopes of raising between £3 billion and £4 billion.
In 2008, the government intervened to prevent NatWest from collapsing during the financial crisis, injecting £45.5 billion into the bank and acquiring an 84% stake in the process.
The progress towards returning NatWest to private ownership is a significant milestone, marking a new phase in the bank’s relationship with the government and paving the way for potential changes in its operations and decision-making in the future. It will be intriguing to monitor how the bank continues to evolve as it moves towards complete privatisation.