British govt to hold 58 pct of RBS after share issue

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London: Royal Bank of Scotland said on Friday the British government will end up with a 57.9 per cent stake in the bank after a share issue to raise funds to help it cope with the financial crisis.

RBS said that ordinary shareholders had agreed to take up only 0.24 per cent of the share issue, with the government then taking up the balance, as provided for in its recapitalisation plan for the British banking system.

Last week, shareholders approved plans to raise 20 billion pounds in fresh capital as part of a state rescue deal for Britain's banking sector.

Under the plan, RBS was to raise 5.0 billion pounds directly from the British government in return for preference shares.

Another 15 billion pounds was to come from ordinary shareholders in a share placing underwritten by the Treasury, with that provision now coming into force.