THE Kuwait Investment Authority said yesterday that it would consider buying a stake in Royal Bank of Scotland, and the sovereign wealth fund revealed it had met with RBS.
Middle Eastern and Asian investors have been touted as likely buyers of the UK taxpayer’s 83% stake in RBS, which was acquired with a multi-billion-pound bailout of the bank, when a sell-off of this holding begins.
Bader al Saad, managing director of the Kuwait Investment Authority, noted the wealth fund had met with RBS, and added: “They did not offer us a stake... When we get an offer, we will look at it.”
The UK taxpayer is currently showing a loss on its investment in RBS. The shares closed last night at 41.39p. A level of about 50p is needed for the taxpayer to break even on its holding in RBS. At 50p a share, the taxpayer’s stake would be worth more than £45bn.
RBS’s Asia-Pacific chief executive, John McCormick, predicted last week that the Government would begin selling the taxpayer’s 83% stake in the Edinburgh-based institution next year.
He added that the timing would likely depend on the bank’s share price.
Stephen Hester, chief executive of RBS, has signalled a desire that the Government’s stake should be sold off as soon as possible. However, he has indicated a belief that any potential investors would be better placed to take a view on the stock after the UK’s Independent Commission on Banking publishes its report on the sector this September.
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