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Govt no longer controlling shareholder in Natwest

  • 25/03/2024
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Govt no longer controlling shareholder in Natwest
The government has lowered its shareholding in Natwest to around 29.8%, which means that it is no longer a controlling shareholder.

A controlling shareholder is defined by the Financial Conduct Authority (FCA) as a shareholder that controls at least 30% of the votes in the company.

It also means that additional regulatory and legal requirements were placed on the government as a shareholder.

The government is still the largest single shareholder of Natwest, but the Treasury said that the “milestone represents clear progress on the government’s commitment to return Natwest to full private ownership”.

The government said that it aims to get Natwest back to full private ownership by 2025-26. This is “subject to supportive market conditions and achieving value for money”.

At the Budget, Chancellor Jeremy Hunt said that the sale of the remaining shareholding in the bank could take place as soon as summer this year.

Last May, the government’s stake in Natwest was lowered by 38.6% following the sale of shares worth around £1.26bn.

The government spent around £46bn to rescue Natwest following the financial crisis.

Bim Afolami, economic secretary to the Treasury, said: “This is a significant milestone demonstrating we’re making excellent progress on fully returning Natwest to private ownership.

“In addition to our successful trading plan, we are now looking ahead to a retail offering of Natwest shares, which could come as soon as this summer, subject to market conditions and value for money.”

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