Connect with us

Published

on

Ordinary investors will be awarded ‘bonus’ shares in NatWest Group if they hold onto stock they acquire in the taxpayer-backed bank, under a plan expected to be finalised by ministers later this month.

Sky News has learnt key details of the options being explored by the Treasury for a multibillion pound retail offer of NatWest shares, including a likely £10,000 cap on applications from members of the public.

Jeremy Hunt, the chancellor, announced in last year’s autumn statement that he would explore a mass-market share sale “to create a new generation of retail investors”.

Since that point, further buybacks by the bank and stock sales by the government have reduced the taxpayer’s stake to around 28% – worth about £7bn at NatWest’s current valuation.

The retail offer will be launched alongside an institutional placing of shares in the bank which could in aggregate lead to the Treasury’s stake falling to as low as 10%, sources indicated this weekend.

If investor demand turns out to be greater than expected, the reduction could be even more substantial, they said.

That would put the government within striking distance of returning NatWest to full private ownership 16 years after the lender was rescued from the brink of collapse with £45.5bn of public money.

More from Business

This weekend, sources said that options under active consideration by Treasury officials included a minimum investment of £250, to encourage a wide participation in the retail offer.

A ceiling of £10,000 was “likely”, they said, mirroring a 2015 Treasury plan – which was subsequently abandoned – for a retail offering by the Treasury of Lloyds Banking Group shares.

The NatWest offer is also expected to award one bonus share for every ten bought by retail investors and retained for at least a year, the sources added, although they cautioned that final details such as the bonus share ratio and precise investment thresholds could still be amended by officials.

A modest discount to the bank’s prevailing share price will also be applied to encourage take-up.

People close to the decision-making process said that Mr Hunt and Rishi Sunak, the prime minister, were being kept closely informed on the plans.

Read more:
Entain approaches former Coral and Sky Bet chiefs in hunt for next boss
Goldman Sachs scraps bonus cap for top London-based staff

Depending upon market conditions, they said an announcement to launch the offer could come in late May or early June.

The green light will be subject to any political turbulence in the aftermath of this week’s local elections, they added.

Shares in NatWest have risen by more than 20% over the last year despite the turbulence surrounding the debanking row involving Nigel Farage, the former UKIP leader.

Dame Alison Rose, the bank’s former boss, stepped down last year after it emerged that she had spoken to a BBC journalist about the closure of Mr Farage’s accounts.

She has since been replaced by Paul Thwaite, whose transition from interim to permanent boss of NatWest was confirmed earlier this year.

NatWest also has a new chairman, Rick Haythornthwaite, who replaced Sir Howard Davies at its annual meeting last month.

Mr Farage, who has threatened to launch legal action against the bank, recently declared his fight with the lender “far from over”.

“For a retail NatWest share sale to work – as outlined by Jeremy Hunt in the Budget – investors must have confidence in the bank,” he said.

“My debanking row with them is far from over.

“They acted in a politically prejudiced way against me and then deliberately tried to cover it up.

“Until they provide full disclosure and apologise for their behaviour, why should any retail customer trust them?”

The government’s stake in NatWest has been steadily reduced during the last eight years from almost 85%.

Sky News revealed earlier this year that ministers had drafted in M&C Saatchi – the advertising agency founded by the brothers who helped propel Margaret Thatcher to power – to orchestrate a campaign to persuade millions of Britons to buy NatWest shares.

NatWest, which changed its name from Royal Bank of Scotland Group in an attempt to distance itself from its hubristic overexpansion, was rescued from outright collapse by an emergency bailout that Fred Goodwin, its then boss, likened to “a drive-by shooting”.

A spokesperson for NatWest said “decisions on the timing and mechanic of any offer are a matter for the Treasury”.

Continue Reading

Business

Blackstone swoops for stake in Theatreland giant ATG

Published

on

By

Blackstone swoops for stake in Theatreland giant ATG

Blackstone, one of the world’s biggest private equity firms, is in advanced talks to buy a stake in Ambassador Theatre Group (ATG), the owner of some of the most famous playhouses in London’s West End.

Sky News has learnt that Blackstone, which manages more than $1trn (£790bn) in assets, is close to snapping up a minority interest in the owner of the Duke of York’s and Lyceum theatres.

If completed, it will be a significant corporate transaction for a company which has staged productions of Harry Potter and the Cursed Child, Hamilton and The Book of Mormon.

Money blog: The mortgage chokehold facing old-age Britons

City sources said that Blackstone was expected to acquire the shareholding from TEG, an Australian live entertainment and ticketing company which bought into ATG during the pandemic.

One added that the deal would involve a stake of between 10% and 15% changing hands.

ATG has been majority-owned by Providence Equity Partners since 2013, making it a lengthy ownership period by private equity industry standards.

Providence did consider running a sale process several years ago but was stymied by the pandemic, which forced the closure of theatres and other live entertainment venues for months during a succession of lockdowns.

ATG operates dozens of theatres in the UK, with its other prominent venues including the Harold Pinter Theatre, as well as the Empire in Liverpool and the Lyric and Hudson on Manhattan’s Broadway.

In total, it owns roughly 60 theatres, having struck a deal in 2021 to buy the Golden Gate Theatre and Orpheum Theatre in San Francisco, and the Fisher Theatre in Detroit – both of which are key cities for touring Broadway productions.

Empire Theatre, Liverpool. Pic: iStock
Image:
The group operates dozens of theatres in the UK. Pic: iStock

Pic: Geoff Moore/Shutterstock
Image:
Pic: Geoff Moore/Shutterstock

Last year, it announced that it was combining its US operations with Jujamcyn Theaters to strengthen its position in that market.

The company competes with rivals including Lord Lloyd Webber’s Really Useful Group and the billionaire Sir Leonard Blavatnik, who owns the Theatre Royal Haymarket.

The valuation of ATG in the deal with Blackstone was unclear this weekend.

Read more on Sky News:
Four members of Britain’s richest family get jail terms
Steelworkers to hold first UK strike in 40 years

Providence acquired the company for £350m over a decade ago.

In 2022, it was reported to be seeking to refinance roughly £1.2bn of debt.

ATG has a workforce of more than 4,000 full-time equivalent employees, and its venues have played host to some of the world’s most successful plays and musicals, including The Lion King, Les Miserables and Wicked.

The company was founded in the 1990s by the husband-and-wife team Sir Howard Panter and Dame Rosemary Squire, who subsequently went on to set up a rival theatrical group.

It is now run by Ted Stimpson, a leisure industry veteran who replaced Mark Cornell last year.

A renewed sale process for ATG is said to be unlikely to take place for some time.

Accounts for International Entertainment Holdings, ATG’s parent company, show it made a record operating profit in the year to 25 March 2023 of £120.5m.

It said that advance ticket sales were exceeding pre-COVID levels.

Blackstone and Providence both declined to comment.

Continue Reading

Business

Tata Steel workers to hold ‘all-out indefinite strike’ in July, Unite says

Published

on

By

Tata Steel workers to hold  'all-out indefinite strike' in July, Unite says

Around 1,500 workers at Tata Steel will hold an “all-out indefinite strike” next month, a union has announced.

The industrial action at the company’s sites in Port Talbot and Llanwern, Newport, will begin on 8 July, Unite said.

The union said the walkout would “severely impact” the company’s UK operations.

It comes in response to plans to close Tata Steel’s blast furnaces in South Wales, putting 2,800 jobs at risk.

The union said it would be the first time in more than 40 years that steel workers in the UK have gone on strike.

Members voted in favour of the move in April.

Industrial action short of a walkout, including staff working to rule and a ban on overtime, began earlier this week.

The union’s general secretary Sharon Graham said: “Tata’s workers are not just fighting for their jobs – they are fighting for the future of their communities and the future of steel in Wales.

“Our members will not stand by while this immensely wealthy conglomerate tries to throw Port Talbot and Llanwern on the scrap heap so it can boost its operations abroad.”

She added: “The strikes will go on until Tata halts its disastrous plans.

“Unite is backing Tata’s workers to the hilt in their historic battle to save the Welsh steel industry and give it the bright future it deserves.”

Read more: Port Talbot’s uncertain future as the cost of going green hits home

Tata Steel previously said it was losing £1m a day at Port Talbot and warned the situation was unsustainable.

The company said its plans, which include the building of an electric arc furnace, would mark the beginning of a new way of “competitive and greener” steelmaking.

The proposals were officially confirmed in January, with its boss TV Narendran telling MPs the decision was “pretty much” a done deal.

Read more from business:
Retail sales up as weather spurs rebound

French economy takes hit after Macron’s election call
Microsoft back as world’s most valuable company

Sky News first exclusively revealed details of the plans in September 2023.

Tata Steel initially offered an enhanced redundancy package to workers affected by the proposals, but this was reduced after the industrial action short of a strike began earlier this week.

Unions, including Unite, expect Labour to hold emergency talks with the company if the party wins the upcoming general election.

Alun Davies, national officer for steel at the Community union, which says it represents the “vast majority” of affected Tata workers, said it had decided with the GMB union not to take part in any industrial action for now.

He added: “If the Labour Party wins the general election it has said that it will hold emergency talks with Tata…

“We welcome this, and now feel it is important to wait for the completion of that process before initiating any significant course of action.”

Continue Reading

Business

Former union boss George Thomson denies being ‘too close’ to Post Office as he gives evidence at inquiry

Published

on

By

Former union boss George Thomson denies being 'too close' to Post Office as he gives evidence at inquiry

The former head of a union for sub-postmasters has denied it became “too close” to the Post Office and was “flush with money”.

George Thomson, formerly of the National Federation of SubPostmasters (NFSP), also denied lacking sympathy for those who were wrongfully convicted during the Post Office scandal, which occurred following faults in the organisation’s Horizon IT system.

It comes after the TUC claimed earlier this year that the Communication Workers Union (CWU) had been blocked from effectively organising at the Post Office, and alleged the NFSP was given funds by the Post Office.

Mr Thomson, who served as its general secretary between 2007 and 2018, gave evidence at the Post Office inquiry on Friday.

When asked by inquiry counsel Julian Blake if he became “too close” to the Post Office, he replied: “No, I wasn’t.”

Mr Thomson later added: “We worked closely with the Post Office because we both needed to have a successful franchise – that’s the reality.”

The inquiry was shown an email sent on behalf of Mr Thomson in August 2013 which outlined plans for the Post Office and NFSP to sign a 15-year contract to represent all Post Office operators.

It included annual payments starting at £500,000 in 2013/14 and reaching £2.5m from 2017 to 2028.

Please use Chrome browser for a more accessible video player

Alan Bates: Knighthood was a bit of a shock

Mr Thomson said it had taken “a lot of badgering” of the then Post Office chief executive Paula Vennells to agree to the deal. He also claimed her team “would have preferred the NFSP withered on the vine”.

Put to him by Mr Blake that they were significant figures, Mr Thomson told the inquiry the NFSP “took on new functions” as part of the deal.

When asked if the NFSP was financially dependent on the Post Office at the time when issues with Horizon were ongoing, Mr Thomson said the federation had lost 8,500 sub-postmasters in the previous 12 or 13 years, and that the money was “replacing what used to be membership money”.

He added: “It was never ever tied to Horizon.”

The inquiry was also shown a Computer Weekly article from May 2009 which detailed the cases of several high-profile sub-postmasters, including Sir Alan Bates.

The sub-postmasters told the magazine their union had “refused to help them investigate their concerns”.

Please use Chrome browser for a more accessible video player

‘Did the mask slip in this email, Ms Vennells?’

Asked by Mr Blake why the NFSP did not help them, Mr Thomson said the federation had to seek permission from the Post Office first.

He said: “We did fight their cases but we asked the Post Office, ‘What are we to do as an organisation?’

“Every case that was brought to us, we took it up with the Post Office.

“You’re trying to make out that somehow we were flush with money… That’s not correct.”

Read more from business:
UK public sector debt hits 99.8% of GDP

Retail sales up as weather spurs rebound
Microsoft back as world’s most valuable company

Mr Thomson said he had investigated 20 or 30 cases at the “highest level” during his time as general secretary, and would have tried to employ a computer expert had he known more about the issues with Horizon.

He said: “I’ve been around a long time – suspensions have always taken place, prosecutions have always taken place, under the manual system as well.

“We had a franchise that was in crisis and we always tried to help people.”

Mr Thomson described Horizon as “a strong system”. He added: “It’s a well-used system, and I still support it systemically as being very robust.”

However, some former sub-postmasters reacted with anger to his testimony on Friday.

They included Christopher Head, who wrote on X: “[Mr Thomson] and his organisation failed it is main overarching duty to protect its members. They are a disgrace and have no place today to be trying to represent the interests of current Postmasters, they are a sham…

“The NFSP should be completely disbanded.”

More than 700 sub-postmasters were convicted between 1999 and 2015 after errors in the Post Office’s Horizon IT system meant money appeared to be missing from many branch accounts when, in fact, it was not.

It has been branded the biggest miscarriage of justice in British legal history.

Continue Reading

Trending