NatWest Group said it was buying back a 4.91% stake in the bank from the UK government for £1.2bn, taking the British taxpayers’ holding to below 50% for the first time since the financial crash of 2008.
The bank said it would cancel the shares once repurchased. NatWest was bailed out by the taxpayer to the tune of £45bn as the global financial system faced meltdown after predatory lending and excessive risk-taking by the sector.
Formerly known as Royal Bank of Scotland Group (RBS), NatWest said it had agreed to make an off-market purchase of 550m shares from the Treasury at Friday’s closing price of 220.5p.
The deal will complete on Wednesday, leaving the government with a 48.1% stake in the banking group. At one stage Briton’s held 84% of the institution.
