Business
off-market purchase of ordinary shares from HMT
off-market purchase of ordinary shares from HMT.
About this update from Natwest Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2036G\n NatWest Group plc\n 28 March 2022\n \n \n \n \n NatWest Group plc\n \n \n 28 March 2022\n \n \n Off-market purchase of 549,851,147 ordinary shares from Her Majesty's Treasury (\"HM Treasury\") resulting in HM Treasury's voting rights in NatWest Group falling below 50%\n \n \n NatWest Group plc (the \"Company\" or \"NWG\") has agreed with HM Treasury to make an off-market purchase (the \"Off-Market Purchase\") of 549,851,147 ordinary shares in the Company with a nominal value of £1 each (\"Ordinary Shares\") at a price of 220.5 pence per Ordinary Share, being the closing price of the Ordinary Shares on the London Stock Exchange on 25 March 2022. The total consideration for the Off-Market Purchase will be £1,212,421,779.\n \n \n The purchased Ordinary Shares represent 4.91 per cent of the Company's issued share capital (excluding treasury shares). The Off-Market Purchase is expected to settle on 30 March 2022.\n \n \n A\n contract (the \"Directed Buyback Contract\") between the Company and HM Treasury was approved by the shareholders of the Company at a General Meeting held on 6 February 2019 and signed on 7 February 2019. The authority from shareholders to make off-market purchases of Ordinary Shares\n \n from HM Treasury (or its nominee) under the terms of the Directed Buyback Contract was renewed at the Annual General Meeting on 28 April 2021. \n \n \n NWG intends to cancel all of the purchased Ordinary Shares.\n \n \n Under chapter 11 of the Listing Rules, the Directed Buyback Contract constitutes a related party transaction. However, the Off-Market Purchase is treated as a smaller related party transaction under \n \n LR 11.1.10 R\n \n .\n \n \n Following settlement of the above transaction:\n \n \n \n \n \n - \n NWG will hold 146,116,846 of its Ordinary Shares as treasury shares; \n \n \n - \n NWG will have in issue 10,650,979,374 Ordinary Shares (excluding treasury shares)[1]; 483,140 Cumulative Preference Shares of £1; and 10,130 Category II Non-cumulative Preference Shares of US$0.01 in issue; and\n \n \n - \n HM Treasury will hold approximately 48.06 per cent. of the Company's voting rights.\n \n \n \n \n \n Based on NWG's proforma position on 1 January 2022, NWG's CET1 ratio of 15.9 per cent will be reduced by 69 basis points (31 December 2...