Government fires starting gun on RBS share sale

Marco Green
June 5, 2018

Britain's government says it intends to sell a 2.6 billion pound (USD 3.5 billion) part of its shareholding in taxpayer-owned Royal Bank of Scotland Group (RBS) to institutional investors.

The U.K. Government Investments Ltd, which controls the British government's 70% stake in RBS, said an accelerated book build will take place to dispose of the shares.

The starting gun has been fired on the long-awaited sell-down of United Kingdom taxpayers' remaining 70pc stake in Royal Bank of Scotland.

The disposal marks the first time RBS shares have been sold since the summer of 2015, when George Osborne sold a first tranche at a loss of about £1bn.

"The Chancellor agreed with that advice and has authorised the process to begin", the Treasury said in a statement.

The bank has been majority owned by the government since it was bailed out to the tune of £45bn at the height of the financial crisis in November 2008.

The government hopes to sell £15bn worth of shares by 2023, about two-thirds of its stake.

The British government insisted that the USA claims had to be resolved before it could sell its stake in RBS.

"As a business RBS remains a work in progress, and consequently an investment for recovery investors with a long-term investment horizon".

Other reports by Click Lancashire

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