The government’s stake in NatWest Group has fallen below 30% for the first time since it was bailed out by the taxpayer in 2008.
The Treasury sold 1.16% of its shares in the lender taking its holding down to 29.82% as part of its ongoing trading plan, according to a stock market statement this morning.
A holding of less than 30% will have little material impact on the relationship between the bank and the government.
However, the state will no longer be classed as a ‘controlling shareholder’ under listing rules, which will mean the firm will no longer need two votes on the appointment of its directors going forward.
A NatWest Group spokesperson says: “We welcome the government’s continued commitment to returning NatWest Group to private ownership.
“With the government shareholding now below 30%, we have been pleased with the recent momentum to achieving this shared ambition, which we believe is in the best interests of the bank and our shareholders.”
Earlier this month, in the Spring Budget Chancellor Jeremy Hunt confirmed that the government plans to return NatWest to private ownership by 2025-26.
This will include a share sale to the public as early as this summer where the government will hope to raise between £3bn and £4bn.
The state recused the bank from going bust during the height of the financial crisis in 2008, taking an 84% stake in the business after pumping £45.5bn into the lender.
