Qatar Investment Authority (QIA) is set to cut its 15 per cent stake in LSE Group, the owner of the London Stock Exchange, by a third.
The deal comes ahead of a rights issue in September by LSE Group to fund the $2.7bn (£1.6bn) purchase of Frank Russell, the US index compiler.
The Middle Eastern investor has tasked Citigroup and Bank of America Merrill Lynch with selling a 4.83 per cent stake in LSE Group in an accelerated bookbuild.
The shares are expected to be sold to a range of investors, rather than one buyer. Qatar Investment Authority is expected to keep a 10 per cent stake in the LSE, with the deal set to be announced this morning.
The sovereign wealth fund has gradually reduced its stake in LSE Group since it initially bought a 20 per cent stake in the bourse in 2007. Borse Dubai is now the largest single shareholder in LSE Group, owning a fifth of the shares.
Qatar Investment Authority said the sale was “routine portfolio management”, while LSE Group did not comment.