NatWest share sale in jeopardy after General Election called, analysts warn

natwest share sale in jeopardy after general election called, analysts warn

The Government is hoping to fully offload its ownership of the taxpayer-backed bank, which it bailed out during the 2008 financial crisis

The much-anticipated public sale of NatWest shares could be in jeopardy following the Prime Minister's snap decision to call a General Election for July 4, sparking concerns among analysts.

Following the election announcement on Wednesday night, NatWest's stock took a hit Thursday morning, casting doubt on the planned retail share offer. The Government has been keen to divest its stake in NatWest, which it acquired during the financial rescue in 2008, aiming to completely exit by 2025 to 2026.

Chancellor Jeremy Hunt had earlier unveiled intentions to begin selling shares to ordinary investors as soon as this summer. Currently holding about 27% of NatWest, the government has been actively reducing its involvement.

However, an unexpected July election, previously thought to be more likely in October or November, could disrupt these plans, initiating a flurry of election campaigning and leading to the dissolution of Parliament. This may delay the Government's plans to launch the sale this summer, which was expected to include a discount on NatWest shares.

Investment bank analysts Robert Sage and Stuart Duncan from Peel Hunt said: "This share sale cannot take place before the General Election and the new government, which polls are currently suggesting is likely to be formed by the Labour Party, may or may not proceed with this initiative."

Labour currently holds a 20-point lead over the Conservatives in opinion polls, according to recent data. Mr Sage and Mr Duncan have suggested that if the share sale is cancelled, it could delay the Government's ability to fully divest its stake in the lender.

Gary Greenwood, an analyst at Shore Capital Markets, said: "In the seemingly unlikely event that the Conservative Party is re-elected, we would expect a rapid thaw and for such plans to be swiftly reintroduced. However, should the Labour Party come to power, as widely anticipated, then such plans are likely to be revisited and possibly amended."

Despite this, he believes any government will ultimately want to reduce and eventually exit its shareholding in NatWest. Last month, NatWest's chairman Rick Haythornthwaite stated that returning the bank to private ownership would "bring an end to a sorry tale for the UK and for the bank", referring to the bank's rescue by UK taxpayers around 15 years ago.

On Thursday morning, shares in NatWest saw a decrease of about 2%. NatWest has chosen not to comment on these reports.

OTHER NEWS

18 minutes ago

Parents urged to be more aware of hidden trend targeting young Aussies as federal government launches Stop It at the Start campaign

18 minutes ago

Video: Chrissy Teigen, Jessica Alba, and Gwen Stefani honor their husbands and dads on Father's Day

18 minutes ago

Video: Amanda Holden, 53, leaves little to the imagination as she shows off her toned physique in a tiny emerald green bikini during latest sunshine break

18 minutes ago

Video: Would YOU watch Bridgerton with your nan? Granddaughter sits through six-minute 'Bonkerton' sex scene with her 90-year-old gran - and the reactions are hilarious

21 minutes ago

Emma Raducanu’s Olympic snub makes perfect sense – and could aid rankings quest

21 minutes ago

Laois shock Kildare to book Tailteann Cup semi-final date

21 minutes ago

Brian Windhorst explains the 3 ways Paul George could shake up the entire NBA in free agency

21 minutes ago

Kevin Costner on his saga, "Horizon," and a possible return to "Yellowstone"

21 minutes ago

Ask Amy: Widow weighs burden of solitude with desire to date

21 minutes ago

Key Player Ruled OUT for Indiana Fever vs. Chicago Sky

21 minutes ago

‘Major polling’ announces Peter Dutton as preferred prime minister

21 minutes ago

Soldiers tell players to 'show the spirit of Ukraine', says Rebrov

24 minutes ago

'This is now a clear need,' Halevi says of haredi draft while touring central Gaza Strip

24 minutes ago

Pakistan and Ireland chase consolation win at T20 World Cup

24 minutes ago

German police shoot man allegedly threatening them with ax in Euro 2024 host city Hamburg

24 minutes ago

Didi Hamann brutally singles out an England star and claims the Three Lions 'CAN'T win a big title with him'... as he blasts the player for 'letting himself down' ahead of Euro 2024

24 minutes ago

Memphis Depay showcases bizarre custom headband in the Netherlands' opening Euro 2024 win over Poland... with shocked fans insisting 'his aura is untouchable'

24 minutes ago

Suki Waterhouse carries her heels as she walks barefoot  from a Beverly Hills wedding party with fiancé Robert Pattinson in tow

26 minutes ago

Ashton Celebrated review – Royal Ballet turns traditional into timeless

26 minutes ago

Caitlin Clark Surprises Fans Ahead Of Sky Rematch

26 minutes ago

Jos Buttler says England ‘looking forward’ to Super 8s after T20 World Cup scare

26 minutes ago

England fans reportedly involved in violent scenes ahead of Serbia clash

27 minutes ago

An emotional win for theaters, Hollywood: ‘Inside Out 2’ scores massive $155 million opening

28 minutes ago

Man wanted in woman's killing in El Salvador arrested in Maryland hiker's death

28 minutes ago

Sean ‘Diddy’ Combs Returns New York’s Key To The City Award Upon Mayor’s Request

31 minutes ago

Would YOU watch Bridgerton with your nan? Granddaughter sits through six-minute 'Bonkerton' sex scene with her 90-year-old gran - and the reactions are hilarious

31 minutes ago

Zara and Mike Tindall enjoy a date night to watch Pink perform - after missing out on Buckingham Palace balcony appearance at Trooping the Colour

31 minutes ago

Sweet moment students go wild after Kate waves to them from her carriage window during Trooping the Colour

31 minutes ago

Two die in Europe as 'record-breaking' 40C heatwave roasts holiday spots across the Continent including Greece, Cyprus and Turkey - while Britain endures June washout and unseasonably low temperatures

33 minutes ago

NPA dismisses claims of Gwede Mantashe’s ‘imminent arrest’

33 minutes ago

Tyla clarifies racial identity after awkward interview

33 minutes ago

‘Kaizer Chiefs must sign Kermit Erasmus’

33 minutes ago

Aiden Markram on South Africa's 1-run wc win over Nepal

33 minutes ago

Tesla’s reincorporation in Texas is seen as loss for Delaware

33 minutes ago

Top economist sees need for Fed change on interest rates

33 minutes ago

Red Sox overpower Yankees, snap Rodon’s seven-game winstreak

33 minutes ago

The Ultimate Ranking Of Boar's Head Deli Meats

34 minutes ago

Late Wout Weghorst goal gives Dutch a 2-1 win over Poland in Euro 2024 opener

34 minutes ago

Danes seek goal-fest through Wind and Hojlund against Slovenia

34 minutes ago

Is This Goodbye? Five NHL Veterans who Could be at the End of the Road