26th Feb 2014 17:30
LONDON (Alliance News) - Royal Bank of Scotland Group PLC Wednesday said it intends to sell its remaining 28.5% stake in Direct Line Insurance Group PLC through a placing with institutional investors.
RBS, which is still majority owned by the UK government after its 2008 bailout, said the price of the share offer will be determined by an accelerated bookbuild that will start immediately.
Goldman Sachs International, Morgan Stanley Securities Ltd, and UBS Ltd will act as joint bookrunners and placing agents for the offering.
RBS will retain just 4.2 million shares in Direct Line in order to satisfy long-term incentive plan awards granted prior to Direct Line's IPO in
RBS was forced by the EU to divest of Direct Line as a condition of its bailout.
Direct Line shares closed up 0.9% at 263.34 pence after reporting a 70% rise in 2013 pretax profit to GBP423.9 million.
RBS is set to publish its results for 2013 on Thursday, February 27. RBS shares Wednesday closed at 358.43 pence, down 1.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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