NatWest Group PLC (LSE:NWG) is getting an extension to the deadline for the sale of HM Treasury’s stake in the company, UK Government Investments said today.
The government investment group said it has agreed to extend the sale of the Treasury’s shares in Natwest under the trading plan announced last July.
The deadline for a sale of the government’s shareholding has now been extended by a year to 11 August 2023.
With its stake going below 50% in March, the Treasury has already recouped £1.6bn from share sales but still holds more than 5bn shares and about 48.5% of its voting rights.
The Treasury plans to sell up to 15% of the total volume of shares in the company, subject to market conditions. It is possible these could be bought by Natwest through a company buyback.
The government investment body has agreed not to sell shares below a price that the Treasury determines represents fair value and delivers money for the taxpayer.
Goldman Sachs (NYSE:GS) has been appointed to advise on the privatisation of the bank and Freshfields Bruckhaus Deringer as legal counsel. Morgan Stanley (NYSE:MS) is handling the sale and will sell down ordinary shares in the bank on behalf of the Treasury.
The Treasury is the sole shareholder in UK Government Investments, which is accountable to an independent board and ultimately to Parliament through Chancellor Rishi Sunak.