UPDATE 3 — The UK government is to sell another 7.7% of its stake in Royal Bank of Scotland for about £2.6 billion.

UK Government Investments Limited (UKGI) said late on Monday it intends to sell part of HM Treasury’s shareholding in RBS via a placing to institutional investors.

The UK Treasury’s shareholding in RBS will be reduced from 70.1% to 62.4% after the sale.

RBS was bailed out during the financial crisis for about £45 billion at an average price of about 502p per share — but RBS shares closed on Monday at around 281p, meaning UK taxpayers are facing a huge loss.

“The price at which the shares are sold will be determined by way of an accelerated bookbuilding process,” said UKGI.

“The book will open with immediate effect following this announcement.

“The placing is expected to comprise of approximately 925 million shares, representing approximately 7.7% of the issued ordinary share capital of the company.

“As a result of the placing, the overall size of HM Treasury’s shareholding in the company will be reduced from approximately 70.1% to approximately 62.4%.

“UKGI and HM Treasury have undertaken to the bookrunners named below not to sell further shares in the company for a period of 90 calendar days following the completion of the placing without the prior written consent of a majority (by participation) of the bookrunners.

“Citigroup Global Markets Limited, Goldman Sachs International, J.P. Morgan Securities plc (which conducts its UK investment banking activities under the marketing name J.P. Morgan Cazenove) and Morgan Stanley & Co. International plc have been appointed to act as joint bookrunners in connection with the placing.

“N M Rothschild & Sons Limited is acting as Capital Markets Adviser.

“Freshfields Bruckhaus Deringer LLP is acting as legal counsel to UKGI in respect of English and US law.

“Details of the placing price and the number of shares sold will be announced in due course.

“Settlement and delivery of the shares is expected to take place on 7 June 2018.”