RBS stake sale realises £2bn loss on bailout valueKathryn
The latest sell-off RBS shares by the Government resulted in a loss of more than £2bn on their value at the time of the bank’s 2008 bailout, it has been revealed.
UK Government Investments (UKGI), which manages the taxpayers’ holding in the bank, confirmed on Tuesday morning it had successfully completed the disposal of a 7.7% stake – first announced on Monday evening.
The placing price was 271p per share, raising just over £2.5bn for the public purse – money the Chancellor Philip Hammond said would be used to draw down the national debt.
The sale – the first since 2015 – brings the Government’s total stake down to 62.4% – though it has attracted criticism on value grounds.
The placing price achieved, at 271p, is well below the 502p the-then Labour government paid for them at the height of the financial crisis almost ten years ago to prevent the lender toppling.
The previous sale three years ago netted public coffers more in value terms because the placing price was 330p.
The Economic Secretary to the Treasury, John Glen, told Sky News the timing was based on the advice it received from the “experts” at UKGI.