As it moves closer to private ownership 15 years after being bailed out during the global financial crisis, NatWest has agreed to acquire £1.3bn worth of its shares back.

As it moves closer to private ownership 15 years after being bailed out during the global financial crisis, British state-backed bank NatWest has agreed to acquire £1.3 billion worth of its shares back from the government.

The agreement would lower the government's ownership interest in the former Royal Bank of Scotland from about 41.4% to 38.69%.

Following a similar block sale, the bank gained majority private control again in March 2022. The government aims to transfer complete ownership of NatWest to private hands by 2026.

In early trade, shares of NatWest increased by almost 1%.

According to a statement from Andrew Griffith, the Treasury's economic secretary, "today's sale is another significant milestone in returning NatWest to full private ownership as promised."

Due to broader sector upheaval brought on by the bankruptcy of many regional bankers in the United States and the emergency acquisition of Credit Suisse, banking shares have suffered this year, but they have recently made some gains. Since this time last year, NatWest stock has increased by about 15%.

In an effort to advance privatisation despite the unpredictability, the British finance ministry in April extended a trade plan allowing a succession of smaller sales to investors by two years.

This is now the sixth block sale of NatWest shares by the government. When British ownership of NatWest peaked in 2008, it was 84%.

The administration has long maintained that a profit cannot be made from the rescue and that it is necessary.

According to NatWest CEO Alison Rose, "This transaction reduces government ownership below 40% and demonstrates positive progress on the bank's strategic priorities and the path to privatisation."

(investing.com, ft.com)