RBS plans to sell more Citizens shares, could cut stake to below 25%

28th Jul 2015 13:43

(ShareCast News) - Royal Bank of Scotland has confirmed that it will soon sell another part of its shareholding in Citizens Financial Group, the US subsidiary it floated in New York last September, in an underwritten public follow-on offering.The bank, which currently has a 40.8% stake in Citizens after selling more shares in April, said it is offering 75m shares of Citizens' common stock, equivalent to 14% of issued and outstanding stock, while a further 11.25m shares will be made available under a 30-day over-allotment option.It said if all the shares and the over-allotment are sold, the bank's remaining stake would comprise 132.7m shares, or a 24.7% stake.Following completion of the offering, RBS will no longer consolidate Citizens in its financial statements.RBS aims to fully exit the US bank by the end of next year.Last week, Citizens reported a big decline in second quarter earnings, although numbers were still ahead of most analyst expectations.The Providence, Rhode Island-based bank outfit lifted adjusted net income 8% to $215m or 40 cents per share, when excluding net restructuring charges and special items. Analysts expected nearer 37 cents.At 12:48, RBS shares were up 0.9% at 350.10p.