UK government cuts stake in NatWest to under 60%

The UK government has sold £1.1bn of shares in NatWest, cutting its stake to just under 60 per cent.

The bank said on Friday that it would buy back 590m shares from the government, equivalent to about 5 per cent of the total shares in issue.

The government has been the majority shareholder in the bank, which used to be called Royal Bank of Scotland, since the 2008 financial crisis. It is the third time since then that the government has cut its stake in the bank.

A statement from the Treasury said that the share sale “represents an important step in the government’s plan to return institutions brought into public ownership as a result of the 2007-2008 financial crisis to private ownership”.

The buyback of the government shares will trigger a £500m contribution to the company’s pension scheme under the terms of a 2018 agreement.