Proactive Investors - NatWest Group PLC (LSE:LON:NWG) has bought back a further £1 billion worth of shares from the Treasury as the government continues to wind down its stake in the bank.
Some 262,605,042 shares equating to 3.16% of the lender’s issued capital were repurchased at a price of 380.8p each, a statement said on Monday (NASDAQ:MNDY).
“As a result of NatWest Group's continued strong performance, we are pleased to have today completed our second buyback of government shares of 2024, further reducing HM Treasury's shareholding,” chief executive Paul Thwaite commented.
This takes the Treasury’s holding in the bank to 12.03% after the government has committed to returning the bank to private hands as early as next year.
“This transaction represents another important milestone on the path to full privatisation,” Thwaite added.
“We believe it is a positive use of capital for the bank and for our shareholders and we are pleased with the sustained momentum in reducing HM Treasury's stake.”
The government’s stake had sat at almost 84% following a bailout at the height of the global financial crisis in 2008.
Sales to the bank and institutional investors since has seen this wound down recently, with the government losing its controlling shareholding in March this year.