RBS share price: Group in talks to sell stake in Euroclear

on Oct 19, 2017
Updated: Mar 11, 2020

Royal Bank of Scotland Group (LON:RBS) is in talks to offload its long-held stake in financial markets infrastructure firm Euroclear, Sky News has revealed. The bailed-out lender is one of about 130 shareholders in the company which plays a central role in settling hundreds of trillions of euros-worth of trades.

RBS’ share price has been steady in London this morning, having added 0.43 percent to 280.40p as of 08:29 BST, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.29 percent lower at 7,520.92 points. The group’s shares have added more than 55 percent to their value over the past year, and are up by nearly a quarter in the year-to-date.

RBS in talks over Euroclear sale

Sky News reported yesterday that RBS, which is one of about 130 shareholders in Euroclear, was in advanced talks to sell its interest in the company. The deal is expected to net at least tens of millions of pounds in proceeds for the lender, which remains more than 70-percent owned by the British taxpayer. The government, however, is expected to delay the sale of shares until the group has reached a settlement with US authorities over mis-sold mortgage-backed securities.

People with knowledge of the matter told the newswire that a Euroclear transaction was expected in the coming weeks while noting that a successful sale would ‘not be material’ in the context of the group’s balance sheet. The identity of the buyer of the stake was unclear, with sources suggesting that it was not one of Euroclear’s existing shareholders.

Move comes as restructuring continues

The potential sale would come as RBS continues with its retreat from non-core operations in the wake of its taxpayer-funded bailout. Sky News noted that executives from within the company’s Capital Resolution unit, the division which has been responsible since 2014 for dealing with £28 billion of legacy assets, are overseeing the Euroclear stake disposal. 

As of 08:52 BST, Thursday, 19 October, Royal Bank of Scotland Group share price is 278.87p.