Continuing our work to dispose of the government’s shareholding
As set out at Autumn Budget 2024, the government intends to fully dispose of the NWG (formerly Royal Bank of Scotland Group plc) shareholding by 2025-26, subject to market conditions and any sale achieving value for money. Advised by FIG, the government has made progress in this policy using a range of disposal methods, including off-market sales of shares back to NWG and an ongoing Trading Plan.
A Trading Plan, otherwise known as a “dribble out”, involves selling shares in the market through an appointed broker in an orderly way at market prices over the duration of the plan. Shares will only be sold at a price that represents value for money for taxpayers. Since launch in August 2021, the Trading Plan has delivered over £8.6bn for the taxpayer, as announced at Autumn Budget 2024. In April 2023, the Trading Plan was extended until August 2025.
The Trading Plan does not preclude the government from using other options to execute transactions that achieve value for money for taxpayers, including during the term of the Trading Plan, and FIG continue to actively seek opportunities for further disposal options when market conditions permit. For example, in November 2024, HMG successfully sold 3.2% of the company back to NatWest via a Directed Buyback, raising £1bn. This followed an earlier Directed Buyback in May 2024, when government sold £1.24bn worth of shares to NWG.
The government’s shareholding stood at 37% at the beginning of 2024. Following two Directed Buybacks and progress under the Trading Plan throughout the year, the shareholding was reduced to 10.99% by 21 November 2024.
In parallel, FIG has continued to engage closely with the NWG Board and Executive team on stewardship issues throughout the year. Over the past 12 months, UKGI has constructively engaged with NWG as it manages the government’s shareholding at arm’s length and on a commercial basis.