RBS announces sale of stake in Direct Line Group

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: