UK government ‘set to resume RBS stake sale’

The UK government is poised to resume selling down its remaining 70.5% stake in Royal Bank of Scotland (RBS) — perhaps as soon as this week — according to a Sky News report.

Some analysts suggested that a disposal could target proceeds of more than £3 billion — equating to a roughly 10% stake in RBS.

Eearlier this month, RBS reached “an agreement in principle” and agreed to pay $4.9 billion to resolve a US Department of Justice investigation into its structuring and sale of mortgage-backed securities before the 2008 financial crisis.

The settlement is expected remove a major hurdle to the UK government’s plan to sell down its remaining stake in the bailed-out bank.

Sky News reported that London bankers and investors have been ‎primed to expect a disposal of part of the UK taxpayers’ shareholding, potentially as soon as this week.

RBS is due to hold its annual general meeting on Wednesday, and it is unclear whether a sale would take place prior to that or shortly after it.