Successful trading plan means government no longer controlling shareholder in NatWest

Due to sales as part of the ongoing trading plan, the government has reduced its shareholding in NatWest Group to below 30%, meaning the government is no longer a controlling shareholder in NatWest.

This is down from a peak government shareholding of around 84%.

Since the trading plan commenced in August 2021, approximately £5.8 billion in proceeds have been raised.

On 22 March the government reduced its shareholding in NatWest to circa 29.8%, meaning that although the government remains the largest single shareholder in the bank it is no longer a controlling shareholder. Natwest Group today issued an update to the market announcing this change. 

A controlling shareholder is defined by the Financial Conduct Authority (FCA) as a shareholder that controls at least 30% of the votes in the company.  Being a controlling shareholder placed additional regulatory and legal requirements on the government in its capacity as a shareholder in NatWest.

This milestone represents clear progress on the government’s commitment to return NatWest to full private ownership, an objective that it intends to achieve by 2025-26, subject to supportive market conditions and achieving value for money.

At the Budget, the Chancellor also announced his intention to deliver a retail offering of NatWest shares, to create opportunities for a new generation of retail investors to engage with public markets.

Economic Secretary to the Treasury Bim Afolami, said:

“This is a significant milestone demonstrating we’re making excellent progress on fully returning NatWest to private ownership. In addition to our successful trading plan, we are now looking ahead to a retail offering of NatWest shares which could come as soon as this Summer, subject to market conditions and value for money.”

The ongoing trading plan, which allows a measured and orderly sale of shares at market price on a daily basis, is one of several disposal methods available to the government. HM Treasury and UK Government Investments continue to keep all possible disposal methods under active consideration for future sales, including accelerated bookbuilds and directed buybacks. Any share sale is subject to supportive market conditions and achieving value for money for the taxpayer.

The Regulatory News Service (RNS) announcement for this shareholding threshold crossing can be found  Holding(s) in Company - HMT shareholding (investis.com)].