RBS set to announce plans to float stake in Citizens Financial Group
London, England, United Kingdom (4E) – The Royal Bank of Scotland (RBS) is expected to make an announcement this week related to its plans to float a portion of its stake in Citizens Financial Group Inc, according to a report from Telegraph newspaper published on Friday.
RBS chief executive Stephen Hester will present to the company’s board the plan to list 20 to 25 percent of its stake in the U.S. retail bank in the next two years, according to a person familiar with the plan. Another source, however, stated that the size of the stake has not yet been determined.
Britain’s biggest state-backed bank could raise more than 8bn pounds ($12.21bn) from a full sale of Citizens. The British government owns an 81 percent stake with the bank. RBS has yet to select advisers for the transaction.
RBS has been under pressure from UK regulators to improve its balance sheet and raise extra capital.
Citing unnamed sources, the newspaper said that RBS could announce the IPO on Thursday when it reports its full-year results.
The Providence, Rhode Island-based Citizens operates in 13 states and has about 1,500 branches. RBS’s U.S. retail and commercial business generated 35bn pounds in revenues in first nine months of 2012.