LONDON, UK: UK Government Investments Limited (UKGI) introduced the profitable completion of the disposal of a half of Her Majesty’s Treasury’s (HM Treasury) shareholding in NatWest Group plc.
The disposal was effected by way of an off-market buy by the Company of 549,851,147 ordinary shares within the Company with a nominal worth of £1.00 each, pursuant to a contract between the Company and HM Treasury signed on 7 February 2019 and most recently reapproved by the Company’s shareholders at its Annual General Meeting on 28 April 2021.
The price paid by the Company for every Share was, in accordance with the Directed Buyback Contract, 220.5 pence, being the price on the shut of buying and selling on 25 March 2022 on the main marketplace for listed securities of London Stock Exchange plc. The total consideration for the Off-Market Purchase will be £1,212,421,779.
As a results of the Off-Market Purchase, HM Treasury’s percentage of voting rights within the Company will fall below 50% to roughly 48.1% following cancellation of the bought Shares, from roughly 50.6%. Going forward, HM Treasury’s percentage of voting rights may increase if Shares are bought by the Company under its ongoing share buyback programme. Any such will increase will, however, be offset (in whole or in part) by any sale of Shares by HM Treasury under the buying and selling plan introduced on 22 July 2021 and managed by Morgan Stanley & Co. International plc which has not been paused in reference to the Off-Market Purchase. The Panel on Takeovers and Mergers has confirmed that any such will increase in HM Treasury’s percentage of voting rights as a results of share buybacks by the Company will not carry any penalties under Rule 9 of the City Code on Takeovers and Mergers.
UKGI and HM Treasury will proceed to maintain different disposal choices under review in order to obtain worth for cash for taxpayers, together with by way of accelerated bookbuilds.
Settlement of the Off-Market Purchase will happen on 30 March 2022.
Goldman Sachs is acting as Privatisation Adviser. Freshfields Bruckhaus Deringer LLP is acting as authorized counsel to UKGI in respect of English and US law.
www.ukgi.org.uk