The British government has sold part of its stake in the NatWest bank.
UK Government Investments Limited (UKGI) announced on Friday that it had completed the disposal of part of the Treasury's shareholding in the banking and financial service firm.
The value of the stake was £1.24 billion ($1.58 billion). The disposal was effected by way of an off-market purchase by NatWest of 392.45 million ordinary shares, pursuant to a contract between the company and the Treasury signed on February 7, 2019.
The deal was amended on November 17, 2022 and May 7, 2024 and most recently reapproved by NatWest's shareholders at its Annual General Meeting on April 23.
In accordance with the contract, the company paid 316.2 pence per each share, being the price at the close of trading on May 30 on the London Stock Exchange plc.
The company intends to cancel 222.45 million of the purchased shares and hold the remaining 170 million shares.
Following the disposal, the Treasury's percentage of voting rights in the company will fall to around 22.5% from approximately 25.98%.
The Treasury's percentage of voting rights may increase if shares are purchased by the company under its ongoing share buyback programme.
Settlement of the off-market purchase will occur on June 4.