Monday, 4 June 2018

Government sells off further 7.7% chunk of Royal Bank of Scotland stake

The Government is to sell off a further 7.7% chunk of Royal Bank of Scotland as it further cuts its stake in the bailed-out bank.
The sale of 925m shares to institutional investors will see the government reduce its stake in RBS from 70.1% to 62.4%.

The sell-off resumes a huge privatisation programme that stalled in 2015, after the government bailed out the bank 7 years earlier during the financial crisis.

Sky News has learned that the sell-off will be priced at about 271p per share.

This will raise government proceeds of just over £2.5bn.

The government sold 5.4% of the bank in 2015 for 330p each - much lower than the 502p it paid for them.

UK Government Investments (UKGI) recently described it as "an entirely fair assumption" that it would be able to sell a £3bn stake in RBS during this financial year.

It also projected for a further £12bn of disposals during the next four fiscal years.

The Treasury said: "UK Government Investments (UKGI) today advised the Chancellor it would be appropriate to conduct the second sale of the Government's shareholding in the Royal Bank of Scotland.

"The Chancellor agreed with that advice and has authorised the process to begin."

SKY     News.

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