U.K. Treasury to Sell More Than $1.4 Billion of NatWest Shares

U.K. Treasury to Sell $1.4 Billion of NatWest Shares in Placing

11 May 2021, 05:09 AM IST

(Bloomberg) -- The U.K. government is preparing to sell more than 1 billion pounds ($1.4 billion) of shares in NatWest Group Plc, further reducing its stake in the lender it bailed out during the 2008 financial crisis.

The Treasury said Monday it plans to place 580 million shares, representing approximately 5% of NatWest’s overall stock, through an accelerated bookbuild. This will take the government’s stake down to 54.8%. A term sheet seen by Bloomberg News said the offering is valued at about 1.14 billion pounds.

Shares in NatWest fell as much as 4% after Sky News earlier reported that Goldman Sachs Group Inc., which is advising the government on privatizations, has begun to sound out institutional investors about a possible disposal.

The news comes two months after the Treasury sold 1.13 billion pounds-worth of stock to the bank, reducing its holding for the first time in almost three years. That sale took place at 190.5 pence per share.

Barclays Plc, Citigroup Inc., Goldman Sachs and Morgan Stanley have been appointed to act as joint bookrunners on the sale, according to the statement.