RBS sale of Direct Line stake nets £630m

An update from RBS has confirmed that the sale of a stake in home insurer Direct Line has raised £630m (release). That's an 18 to 20 per cent premium on the insurer's 175p floatation price.

Now the state-backed bank retains a 30.3 per cent stake in the insurer, which was floated last Autumn. RBS previously sold a £507m stake in March.

RBS now holds 427.4 million ordinary shares of Direct Line Group, representing 28.5% of the issued ordinary share capital. If the over-allotment option is not exercised, RBS's remaining stake will comprise 454.7 million shares, equivalent to 30.3% of Direct Line Group's issued ordinary share capital.