Achi news desk-
The owner of Royal Bank of Scotland moved into public ownership after it was bailed out by the UK Government for £45.5 billion during the financial crisis of 2008 and 2009. The rescue deal resulted in taxpayers holding an 82% stake in the bank, however. shareholding is now just below 27%, following recent share sales by the Treasury through directed buybacks.
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“It’s time to get Sid to invest again,” the Chancellor declared in November.
NatWest chief executive Paul Thwaite has recently praised how important it is for the bank to return fully to private hands, amid expectations that the Government’s share of the benefit could rise to around £6 billion.
However, now that Mr Hunt’s boss Rishi Sunak has called a General Election for July 4, it seems that Sid may not be returning after all.
Lindsay James, investment strategist at wealth management business Quilter Investors, said the proposed offer, which could have taken place in early summer, was now “in limbo”.
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“This retail offering, along with other initiatives such as the UK ISA, was part of the Government’s package of ideas to help revitalize the UK stock market and public investment culture,” Ms James said. the timing of this and likely becoming the responsibility of the next government leaves those plans somewhat in a state of limbo.
“The government proposed a similar scheme with its ownership of Lloyds back in 2015, but that never saw the light of day. With political uncertainty now in place, there is every possibility that the same thing happens with these shares in NatWest.”
NatWest has declined to comment on what the election call may mean for the outlook for the retail offering.
Shares in the bank were trading down more than 2% at 307p at 3.30pm today.
