UK lender Royal Bank of Scotland Group plc (LON:RBS) has launched an accelerated bookbuilding process, looking to sell 229.4m common shares in the insurer Direct Line Insurance Group plc (LON:DLG).
RBS aims to dispose of the stake through a placement to institutional investors. The sale is being jointly run by Goldman Sachs International, Morgan Stanley Securities Limited and UBS AG (VTX:UBSN).
The base offer represents a 15.3% holding in Direct Line Insurance. If an over-allotment option is exercised, RBS will sell another 22.9m shares, trimming its stake in Direct Line Insurance to 48.5%. In case the sale is restricted to the base offer, RBS will be left with 749.9m shares, or 49.99% of the target.
RBS has agreed not to sell any other shares in Direct Line Group for 180 days after the current placing is completed unless such a move is approved by the joint bookrunners.
