The Royal Bank of Scotland Group (RBS) has announced that it intends to sell part of its shareholding in Direct Line Group (DLG) (release). The offering is expected to comprise a base offering of 229.4 million ordinary shares (15.3 per cent of DLG's ordinary share capital). An over-allotment option of a further 22.9 million shares will be made available.
Assuming no exercise of the over-allotment option RBS would retain 49.99% of DLG's issued ordinary share capital. RBS has entered into a placing agreement with Goldman Sachs International, Morgan Stanley Securities Limited and UBS to act as joint bookrunners and placing agents.
City A.M.'s banking reporter Tim Wallace:
RBS to sell another 15.3% of Direct Line, worth about £500m. Follows IPO last yr. Has to sell it all by end of 2014 under bailout deal.— Tim Wallace (@Tim_Wallace) March 12, 2013
RBS raised £787m in the IPO, selling almost one-third of Direct Line. Shares well up since, hence £500m expected now. twitter.com/Tim_Wallace/st…— Tim Wallace (@Tim_Wallace) March 12, 2013