By Max Colchester
Royal Bank of Scotland Group PLC on Monday said it planned to
sell another chunk of stock in Citizens Financial Group Inc., as
the British bank looks to focus on its domestic market.
RBS, which hold a 70.5% stake in Citizens, said it would look to
sell a 21% stake in the U.S. lender. It also said it had the option
to sell a further 3% stake if there was demand.
The U.K. government-controlled bank will hold a roadshow in the
next few days to woo investors and a price for the share sale could
be set as early as the end of this week.
RBS isn't expected to remove Citizens from its books until its
stake in the lender falls to around 35%, a move that is expected to
be complete this year. RBS aims to completely exit Citizens by the
end of 2016.
The British bank sold $3 billion of Citizens stock in September
but interest was muted amid investor skepticism over the valuation
of banking stocks. Shares in Citizens have since rallied from
$21.50 to $24.80.
RBS is selling off its stake in Citizens following British
political pressure to refocus on U.K. clients. In its annual report
the bank took a $4 billion hit on the goodwill value of Citizens as
it was forced to write it down to its estimated disposal value.
The Providence, R.I.-based lender operates one of the largest
regional banks in the U.S., with branches across the New England,
mid-Atlantic and Midwest regions.
Write to Max Colchester at max.colchester@wsj.com
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