NatWest Group said it has raised €126m by selling its remaining stake in Ireland's Permanent TSB Group in a placing with institutional investors.
The 11.7% stake was disposed of at a placing price of €1.98 per share.
NatWest initially acquired a stake of 16.66% in PTSB in November 2022 as part of its acquisition of the Ulster Bank Retail business.
Under a shareholder co-operation agreement, NatWest said the Minister for Finance Paschal Donohoe has agreed not to sell shares in PTSB for 90 calendar days following the placing.
Eamonn Crowley, PTSB's group chief executive, said the bank welcomed the decision by NatWest to dispose of their shareholding in PTSB.
"This marks another important step towards normalising the composition of our shareholder base and creating further liquidity in the bank's shares," the CEO said.
"It also demonstrates that there is a strong market appetite to invest in PTSB, and confidence in our strategic direction to deliver real and sustainable value for our shareholders. I would like to take the opportunity to thank NatWest for their support for PTSB over the last few years, in particular their role in supporting our acquisition of Ulster Bank businesses in Ireland," he added.
Commenting on the move, Davy Stockbrokers said the disposal by NatWest Group of its remaining holding removes an overhang and should improve liquidity in PTSB's stock.
"PTSB is well positioned due to a range of initiatives, including operational and capital efficiency measures currently underway to increase profitability and return and resume distributions to shareholders," Davy added.
