The Royal Bank of Scotland (RBS) will net up to $3.7bn from the sale of part of its stake in US retail bank Citizens Financial Group.
RBS plans to sell 135 million shares comprising 24.7% of Citizens common stock at $23.75 per share, it confirmed today. This is a slight discount to yesterday's closing price of $24. Gross proceeds of the sale will be $3.2bn, or $3.7bn assuming exercise in full of the over-allotment option, which allows the underwriters to purchase additional shares. This option would take the stake sold to 28.4% of the group. Following the public offering, RBS Group will continue to hold up to 45.6% of Citizens shares, but plans to sell its remaining interest by the end of 2015, in a bid to strengthe...
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