Government cuts NatWest stake to 22.5% after £1.24bn sale

The government has sold a £1.24bn stake in NatWest, as the HM Treasury continues to reduce its shareholding in the state-backed lender.

The bank announced on Friday that the share sale was effected by way of an off-market purchase by NatWest of more than 392m shares at 316.2p, Thursday's closing price.

The deal cut UK Government Investments Limited's stake in the bank from 25.98% to 22.5%. The government once held an 84% shareholding in the bank after bailing it out during the 2008 financial crisis.

Last week, it was announced that the government's proposed share sale to retail investors planned for this summer had been suspended because of the general election on 4 July.