NatWest ‘Tell Sid’ retail share sale plans scrapped | Business News

NatWest said it “welcomes” the government’s commitment to return it to fully private ownership after the Chancellor announced she was canceling a retail share sale in the high street bank.

Rachel Reeves said the plans, announced by the previous Conservative administration, were a “misuse of taxpayers’ money” and suggested the bank’s remaining state shares would now be sold to large institutional investors.

Authorities were preparing for a mass market sale this summer, with shares offered to ordinary investors at a discount to the bank’s prevailing share price, along with “bonus” stock offers, to encourage adherence.

However, implementation – which should be supported by a “Tell Sid” push-like advertising campaign which accompanied the sale of shares in British Gas after its denationalization in the 1980s – was suspended by Rishi Sunak’s decision to call a snap general election.

See more information: Why things are looking good for NatWest 12 months after the meltdown crisis

The bank – formerly known as Royal Bank of Scotland – was 84% ​​owned by the taxpayer, after being rescued with a total of £46 billion of public money in 2008 and 2009, during the financial crisis.

Since then, the Treasury has been selling its stake in the lender, with the State’s stake falling to less than 20% in recent weeks.

However, it has been estimated that selling shares at retail could cost taxpayers up to £450 million.

The chancellor said the government still intends to “fully exit” its stake in Natwest by 2025-26.

Speaking on Monday, she told the Commons: “But having considered the advice, I have concluded that a retail share sale offer would involve significant discounts that could cost taxpayers hundreds of millions of pounds.

“Therefore, it would not represent value for money.

“This will not go forward. It is a misuse of taxpayers’ money and we will not do it.”

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A NatWest Group The spokesperson said: “We welcome the Chancellor’s commitment to return the NatWest Group to full private ownership.

“This is a shared ambition that we believe is in the best interests of both the bank and all our shareholders.”

Last week the bank revealed it had spent £24m on the canceled plans, including advertising.

However, it is understood that part of this amount must be reused for general advertising purposes, although the law also covers legal fees and expenses.