In a news report from the Telegraph, the Royal Bank of Scotland is to announce its plans to sell a portion of its interests in US retail banker Citizens Financial Group Inc. The full sale for Citizens Financial would amount to proceeds of GBP8 billion or US$12.21 billion for the UK's largest lender. RBS, which is backed by the state, has been receiving pressure from regulators to fix its balance sheet.
The IPO would be announced during its full year report by Thursday this week according to the newspaper, citing sources familiar with the plan who requested anonymity. The plan includes divesting up to 25% of its stake for the next two years but a full purchase would also be considered. One of the potential suitors is TD Bank of Canada.
Both the Financial Services Authority and the UK Financial Investments, the fund manager of 82% in RBS coming from taxpayer, have signified their support for the deal.
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