Royal Bank of Scotland is in talks with the Government to buy back a ‘golden share’ to pave the way for the bank to restart dividend payouts.
The Financial Times reports that as part of the bank’s bailout in 2008, the Government acquired a dividend access share, which means the Treasury can take an enhanced dividend before payouts are made to ordinary shareholders.
The talks between RBS, the Government and the European Commission to end the DAS, which have been ongoing since last year, have meant the bank’s AGM has been deferred from April to the end of June.
Delaying the meeting gives more time for negotiations, with any deal requiring the approval of the around 20 per cent of minority shareholders in the bank.
The DAS was valued at about £1.5bn as of last March.
RBS declined to comment.