RBS set to make £1bn from remaining Direct Line stake

RBS sign RBS is 81% owned by the UK taxpayer

Related Stories

RBS has announced plans to sell its remaining stake in Direct Line, which could net the taxpayer-owned bank more than £1bn.

The bank said it would offer 423.2 million shares, which is about 28% of the insurance firm.

RBS was ordered to sell Direct Line as a condition of its 2008 bailout. It will retain a few shares to cover long-term incentive plans for executives.

It is expected to report an £8bn loss in its full-year results on Thursday.

Based on the current value of Direct Line shares, which closed at 263.34p on Wednesday, the sale of the remaining RBS stake could generate £1.1bn.

The bank sold 20% of its holding in the insurer in September, generating £630m.

Under European Union competition rules, imposed after the £45bn taxpayer bailout of RBS, it must sell its entire holding by the end of this year.

Earlier on Wednesday, Direct Line reported a 70% increase in full-year pre-tax profit, helped by a reduction in home insurance claims.

More on This Story

Related Stories

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories



BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.