UK Government ownership
To maintain financial stability at the height of the financial crisis, the UK government injected a total of £45.5 billion into the Royal Bank of Scotland (RBS) between October 2008 and December 2009. The UK Government via HM Treasury became the majority shareholder of RBS in November 2008 taking a 58% stake in the ordinary shares alongside a tranche of preference shares. In April 2009 the preference shares were converted into ordinary shares. In December 2009 a further tranche of B shares was acquired leading to a total economic ownership of 84.9%.
On the 4th August 2015 HM Treasury began the process of selling shares back to the private sector, selling 630m ordinary shares and reducing its ownership of ordinary shares from 61.8% to 51.5% and its total economic ownership (including B shares) from 78.7% to 72.9%.
On 14th October 2015 the B shares were converted into ordinary shares, increasing ownership of ordinary shares to 72.9%.
On 5th June 2018 HM Treasury made a second placing of 925m shares at 271p, reducing its ownership of ordinary shares from 70.1% to 62.4%.
On 19th March 2021 UKGI announced the successful completion of the disposal of part of HM Treasury's shareholding in NatWest Group plc (NWG). The disposal was effected by way of an off-market purchase by NWG of 591m ordinary shares in the Company. The price paid by the Company for each Share was 190.50 pence. As a result of the Off-Market Purchase, the shareholding of HM Treasury reduced from 61.9% of the ordinary share capital of NWG, to 59.8% of the ordinary share capital after share cancellation and excluding treasury shares.
On 11 May 2021 UKGI announced the disposal of 580m ordinary shares held by HM Treasury through an accelerated book building process to institutional investors. The placing was 190 pence per Placing Share with proceeds of £1.1bn. As a result of the Placing the shareholding of HM Treasury reduced from 59.8% of the issued ordinary share capital to 54.8%.
On 22 July 2021 UKGI announced its intention to sell part of the HM Treasury shareholding over 12 months from 12 August 2021 through a prearranged trading plan. Under this trading plan it had discretion to effect a measured and orderly sell down of shares in the company for up to, but no more than, 15% of the aggregate total trading volume. At the time of the announcement, HM Treasury owned 54.7% of voting rights in NWG.
As a result of the directed buyback of NWG shares by the Company from HM Treasury in March 2021, sales of NWG shares by HM Treasury by way of an accelerated bookbuild in May 2021 and purchases made under NWG’s on-market buyback programme announced in July 2021, as at 11 February 2022, HM Treasury held 50.94% of the issued share capital with voting rights of NWG.
On 18 February 2022 NWG announced a £750 million on-market buyback and on 28th March 2022 a further off-market purchase of c.550 million of its own shares from HM Treasury at 220.5 pence per share - a total cost of around £1.2bn. This took HM Treasury’s ownership in NWG below 50% for the first time since 2008.
In April 2023 HM Treasury announced an extension to its trading plan to terminate no later than 11 August 2025.
On 22 May 2023 NWG agreed with HM Treasury to make an off-market purchase of 469m ordinary shares at a price of 268.4 pence per share. This represented 4.95% of the issued ordinary share capital (excluding treasury shares) and reduced the holding of HM Treasury to 38.53% of voting rights.
As a result of the purchases made under NWG’s on-market buyback programmes announced in July 2023 and February 2024 and HM Treasury’s ongoing trading plan, as at 23 February 2024 HM Treasury held 32.88% of the issued share capital with voting rights NWG.
UK Government share ownership:
| |
Dec '08 |
Dec '10 |
Dec '12 |
Dec '14 |
Dec '16 |
Dec '20 |
Dec '22 |
Dec '23 |
| UK Government
|
58% |
68% |
65% |
62% |
71% |
62% |
45.97% |
37.97% |
As at 24 June 2024 the percentage of voting rights held by HMT in NatWest Group was 20.92%.
For the latest Government shareholding announcements please visit our Company Announcements page and search for ‘Notification of major holdings’.
UK Government share sales
| |
04.08.15 |
05.06.18 |
| Share price immediately before the sale |
338p |
281p |
| Price at which shares were sold |
330p |
271p |
| Discount |
2.30% |
3.53% |
| Number of shares sold |
630m |
925m |
| Proceeds from the sale |
£2.1bn |
£2.5bn |
| HMT economic interest in RBS pre sale |
78.3% |
70.1% |
| HMT economic interest in RBS post sale |
72.9% |
62.4% |