Business

RBS seen planning citizens financial IPO

February 24, 2013

LONDON, Feb 24 — The Royal Bank of Scotland will unveil plans next week to float a portion of its stake in US retail bank Citizens Financial Group Inc, the Telegraph newspaper reported late yesterday.

A full sale of Providence, Rhode Island-based Citizens could raise more than £8 billion (RM38 billion) for Britain’s largest state-backed lender, which has been under pressure from regulators to strengthen its balance sheet.

RBS was expected to announce a plan to move forward with the IPO when it reports full-year results on Thursday, the newspaper said, citing an unnamed source familiar with the plan.

RBS may aim to spin off up to a 25 per cent stake in the next two years, but the bank would also entertain offers from buyers looking for a full stake. Canada’s TD Bank was one potential buyer, the paper said.

The RBS board has secured the support of both the Financial Services Authority and UK Financial Investments, which manages the taxpayers’ 82 per cent stake in RBS.

An RBS spokesman contacted by Reuters declined to comment. — Reuters

Biz Updates from PR Newswire

More