British banking giant RBS has launched a registered underwritten public offering to sell its remaining 20.9% stake in Citizens Financial Group (CFG).
CFG in a regulatory filing said RBS plans to sell 110.5 million shares in the offering, which worth around $2.7bn.
Completion of the Offering is expected to result in RBS’s complete exit of its ownership stake in CFG’s common stock.
CFG added that is not selling any shares and will not receive any of the proceeds from the offering.
RBS acquired Citizens in 1988 and floated in September 2014 raising $3.46bn by selling 25% stake. Six months later, the British lender again sold 132 million shares reducing its stake in Citizens to below 50%. In July this year, RBS again trimmed its stake by offloading shares worth $2bn in Citizens.
The move is part of RBS’s strategy to reduce exposure to foreign markets and instead concentrate on retail and business banking in the UK.
The British lender would also withdraw a board representative from Citizens following the completion of the sale.