The Royal Bank of Scotland (RBS) will net up to $3.7bn from the sale of part of its stake in US retail bank Citizens Financial Group.
RBS plans to sell 135 million shares comprising 24.7% of Citizens common stock at $23.75 per share, it confirmed today. This is a slight discount to yesterday's closing price of $24. Gross proceeds of the sale will be $3.2bn, or $3.7bn assuming exercise in full of the over-allotment option, which allows the underwriters to purchase additional shares. This option would take the stake sold to 28.4% of the group. Following the public offering, RBS Group will continue to hold up to 45.6% of Citizens shares, but plans to sell its remaining interest by the end of 2015, in a bid to strengthe...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes