RBS Completes Sale of Stake in Citizens Financial Group
October 30 2015 - 9:32AM
Dow Jones News
By Razak Musah Baba
LONDON--Royal Bank of Scotland Group PLC (RBS) has sold its
remaining stake in Citizens Financial Group, Inc., for $2.6
billion, as part of RBS's move to improve its capital ratio.
The bank, in which the U.K. has a 73% stake, confirmed Friday it
has sold 110 million shares, or 20.9% of Citizens common stock, at
a price per share of $23.38.
The net proceeds of $2.6 billion will be used for general
business purposes, it said. The sale will result in a pretax gain
of around 100 million pounds ($153.1 million) in the fourth
quarter, it added.
RBS is undergoing a multiyear restructuring to simplify its
operations and refocus on its home markets.
"The completion of the sale of Citizens is a critical part of
our capital plan and further improves our CET1 capital ratio. A
strong capital position is the essential platform on which we will
continue to build a simpler, stronger and more efficient
U.K.-focused bank that can better serve the needs of its
customers." RBS Chief Executive Ross McEwan said.
Citizens, a regional lender based in Providence, R.I., said
Thursday that RBS expects its designee to the Citizens board to
resign when the sale is completed.
In March, RBS raised $3.2 billion through the sale of Citizens
shares. In July, RBS announced another sale of Citizens stock
valued at up to $2.6 billion, including overallotments.
Shares in RBS, which Friday reported a rise in third-quarter net
profit, were down 5 pence, or 1.7%, at 315 pence in midday trading,
valuing the company at GBP52.57 billion.
RBS revenue fell 16% to GBP3 billion, and the bank made an
operating loss of GBP134 million in the quarter, down from a profit
of GBP1.1 billion the year before.
-Josh Beckerman contributed to this article
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 30, 2015 09:17 ET (13:17 GMT)
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