Business

RBS cuts the price of shares in Citizens Financial sale

  • 24 September 2014
  • From the section Business
RBS Headquarters

Royal Bank of Scotland has cut the price of shares in the sale of a stake in US bank Citizens Financial Group.

RBS will raise $3bn (£1.8bn) from selling the 25% stake, after pricing the shares at $21.50 each.

Earlier this month it priced the shares in the range of $23 to $25 per share, potentially raising $3.5bn.

The Financial Times reported that some investors were concerned about the outlook for Citizens and were unwilling to pay the higher price.

In a statement RBS chief executive, Ross McEwan said: "The sale of Citizens is an integral part of the RBS capital plan.

"Selling Citizens will significantly improve our capital position and help us to create a strong and secure bank that can continue to fully support the needs of its customers."

RBS bought Citizens for $440m in 1988 and subsequently turned it into one of the biggest regional banks in the US.

Since being bailed out by the UK government in 2008, RBS has been under pressure to sell its foreign holdings.

RBS has said it plans to sell its entire stake in Citizens by 2016.

Shares in Citizens are due to start trading on the New York Stock Exchange on Wednesday.

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