RBS plans to sell 135 million shares comprising 24.7% of Citizens common stock at $23.75 per share, it confirmed today. This is a slight discount to yesterday’s closing price of $24.
Gross proceeds of the sale will be $3.2bn, or $3.7bn assuming exercise in full of the over-allotment option, which allows the underwriters to purchase additional shares. This option would take the stake sold to 28.4% of the group.
Following the public offering, RBS Group will continue to hold up to 45.6% of Citizens shares, but plans to sell its remaining interest by the end of 2015, in a bid to strengthen its capital position.
RBS had already sold down 29.5% of its stake in Citizens during the second half of 2014 through an initial public offering.
“The sale of Citizens is an integral part of the RBS capital plan. It will help us to create a stronger, safer, UK focused bank that can better serve the needs of its customers,” said RBS CEO Ross McEwan.
RBS is still 80% owned by the UK taxpayer, following its 2008 bailout.
