RBS announces next phase of Citizens sell-off

RBS announces next phase of Citizens sell-off

The Royal Bank of Scotland has announced that it intends to sell part of its shareholding in its American subsidiary Citizens in an underwritten public follow-on offering.

The Offering is expected to comprise 115 million shares of Citizens’ common stock, equivalent to 21 per cent of CFG’s common stock excluding an over-allotment option.

A further 17.25 million shares will be made available by RBSG under a 30 day over-allotment option. If all the CFG shares made available in the Offering are sold, assuming no exercise of the over-allotment option, RBS’s remaining stake would comprise 269.7 million shares, equivalent to 49.3 per cent of CFG’s issued common stock.

If the over-allotment option is exercised in full, RBS’s remaining stake would be 252.5 million shares or 46.1 per cent of CFG’s common stock.

After floating the business in New York last year, 82 per cent state-owned RBS faced a statutory six-month period before it could start selling down its remaining stake of more than 75 per cent.

The flotation has already netted the state-backed lender more than £2 billion and the shares have added almost a fifth in value since their September debut.

Meanwhile, RBS has led a finance package for Glasgow-based plant, tool and equipment hire company GAP Group which is aiming to double its business in the next five years.

The company has signed an asset-based lending (ABL) facility for the value of £220 million in one of the largest ever ABL deals for a Scottish company.

It was agreed by a four bank club lead by RBS and supported by Barclays, Wells Fargo Capital Finance and PNC Business Credit.

The new arrangement replaces a previous £75m asset-based lending facility from RBS.

GAP plans to use the finance to help double turnover from £140m in 14/15 to £300m and to purchase property of £50m over the five years.

KPMG advised on the deal.

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