The UK Government Investments Limited (UKGI) announced on Friday that it has completed the sale of a portion of His Majesty's Treasury's shareholding in NatWest Group plc (NWG.L), a banking and financial services company, for £1.24 billion.
The sale was conducted through an off-market purchase by NatWest of 392.45 million ordinary shares, based on a contract signed with HM Treasury on February 7, 2019. This agreement was amended on November 17, 2022, and May 7, 2024, and was most recently reapproved by NatWest's shareholders at its Annual General Meeting on April 23.
Under the Directed Buyback Contract, the company paid 316.2 pence per share, reflecting the closing price on May 30 on the London Stock Exchange. NatWest intends to cancel 222.45 million of the purchased shares and retain the remaining 170 million shares in treasury.
As a result of this transaction, HM Treasury's voting rights in NatWest will decrease from approximately 25.98% to around 22.50%. However, HM Treasury's percentage of voting rights might rise if NatWest continues its share buyback programme.
The settlement of this off-market purchase is scheduled to occur on June 4.
