![](\"http:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/03\/natwest-seeks-approval-to-buy-more-stock-to-speed-privatisation.jpg\")
NatWest (NWG.L) will seek shareholder approval to buy back up to 15 per cent of its stock from the UK government, it said on Monday, as part of efforts to speed up privatisation of the lender bailed out at the height of the 2007-9 financial crisis.<\/p>\n
In a circular published ahead of the bank\u2019s annual investor meeting in April, NatWest has asked its investors to back a resolution that would enable it to acquire up to 15 per cent of its total stock from the government in a 12-month period, up from a previous ceiling of 5 per cent a year.NatWest \u2013 formerly known as Royal Bank of Scotland \u2013 remains around a third owned by taxpayers. The government is steadily selling down its holding, including through a planned sale of stock to the public as early as June, and has said it wants to exit completely by 2026.NatWest\u2019s request to its investors depends on regulatory reforms that should take effect later this year that would make it easier for companies to make larger buybacks of stock from a major investor.Based on NatWest\u2019s current market capitalisation, a 15 per cent chunk of its stock would be worth around 3 billion pounds ($3.8 billion).The government has cut its ownership from a high of 84 per cent through sales to institutional investors and directly to NatWest.Britain\u2019s finance minister Jeremy Hunt in November outlined plans to sell stock to retail investors to accelerate the process and try to reinvigorate interest in investing in UK stocks.Investors at NatWest\u2019s annual meeting are also being asked to approve formally the appointments of chairman Rick Haythornthwaite and chief executive Paul Thwaite. Both were named since the abrupt exit of former CEO Alison Rose last year.The bank\u2019s shares closed broadly flat on Monday at 240.1 pence, but are up 9 per cent year-to-date, boosted by the bank reporting its highest annual profit since its bailout in February.However, taxpayers are all but certain to make a hefty loss on their rescue of the bank, as all sales of government-owned stock to date have been below the bailout price of 502 pence.Follow the
\nCyprus Mail on Google News<\/p>\n","protected":false},"excerpt":{"rendered":"
NatWest (NWG.L) plans to seek shareholder approval for a buyback of up to 15% of its stock from the UK government as part of its privatisation efforts. This request is an increase from the previous limit of 5% per year. The bank, which is about one-third owned by taxpayers following a bailout during the 2007-9 financial crisis, aims to accelerate the government’s exit, planned by 2026. The proposed buyback, based on current market capitalisation, would be worth around \u00a33 billion. The UK government has been reducing its stake from a peak of 84% through sales to institutional investors and directly to NatWest. Finance Minister Jeremy Hunt announced plans to sell stock to retail investors to speed up the process. NatWest’s annual meeting will also include votes on the formal appointments of chairman Rick Haythornthwaite and CEO Paul Thwaite. The bank’s shares have increased by 9% year-to-date, following a report of its highest annual profit since the bailout. However, sales of government-owned stock have been at a loss compared to the bailout price of 502 pence.<\/p>\n","protected":false},"author":3,"featured_media":4772,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1902,195,2619,33,3,2515,569,518,250,415,1823,899,1346,2617,2247,389,1538,2242,2618,494],"class_list":["post-4771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-bank","tag-britain","tag-buyback","tag-companies","tag-cyprus","tag-february","tag-finance","tag-finance-minister","tag-google","tag-government","tag-increase","tag-interest","tag-meeting","tag-privatisation","tag-profit","tag-rescue","tag-resolution","tag-scotland","tag-shareholder-approval","tag-uk"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n