NatWest Group completed a rapid $1.24 billion share buy-back, while the UK government reduced its stake in the bank to 22.5%.
NatWest Group (LSE:NWG) got away a quick-fire $1.24 billion share buy-back before the UK general election stalls dealing.
The company bought the shares from the UK government, which reduced its shareholding to 22.5% from 26%.
Its shareholding followed the Government’s 2008 bail-out of the banking sector, with the taxpayer at one stage owning 58% of the banking group.
This means that shareholder returns, comprising buybacks and dividends, will now total £2.74 billion for the year.
Importantly, with the general election coming in early the Government’s divestment of its remaining stock, representing 22.5% of Natwest, may potentially stall.
“Generally, we view the progressive elimination of the UK Government's holding as positive for the rating of the shares,” stockbroker Peel Hunt said in a statement.
Peel Hunt rates NatWest as a 'buy', with a 370p price target – compared to today’s closing price of 315p each.
