LONDON (Reuters) - State-backed Royal Bank of Scotland said it intends to sell up to $2.2 billion more shares in its former U.S. arm Citizens , which would cut its stake in the business to less than a quarter.
RBS said on Tuesday it would sell 75 million shares in Citizens in an underwritten public follow-on offering, plus up to 11.25 million more shares in an over-allotment option. Citizens shares closed at $25.94 in New York on Monday.
RBS said if all the shares and the over-allotment option are sold it would have 132.7 million shares in Citizens left, or a 24.7 percent stake.
RBS said it will no longer consolidate its Citizens holding in its financial accounts following the sale. The move is expected to give a substantial boost to its capital strength.
(Reporting by Steve Slater, editing by Sinead Cruise)
