(Bloomberg) -- The UK government continues to hasten its exit from NatWest Group Plc and will no longer be considered a related party to the lender it rescued during the financial crisis after recently disposing of more shares.
The government’s stake has dropped below 20% for the first time since 2008, according to a statement Monday. Under the country’s newly revamped listing rules, that means the government will cease to be considered a related party to the bank starting in one year.
“Returning NatWest Group to full private ownership remains a key ambition,” Chief Executive Officer Paul Thwaite said in a separate statement. “We believe it is in the best interests of both the bank and all our shareholders.”
The government has been rapidly winding down its stake in NatWest through a series of open market sales in recent months. Its holding in the bank has now dropped to 19.97% from 37.98% in December.
NatWest also repurchased £1.24 billion ($1.6 billion) worth of the shares through a directed buyback in May. The bank has also secured permission from shareholders that allow it to buy back its stock from the UK government even more quickly.
Under former Prime Minister Rishi Sunak, UK officials had been formulating plans to sell the shares the government holds in the bank to retail investors as it seeks to offload the entire stake by 2026. Those plans have been on hold since Sunak’s shock decision to call a general election for July 4. The Labour Party, which won the election, has pledged to review the efforts.
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