RBS to reduce Direct Line stake by a further 20 per cent

20th Sep 2013 11:08

The Royal Bank of Scotland (RBS) has completed the sale of 300m ordinary shares in Direct Line Insurance, following its announcement late Thursday that it planned to sell as much as 20 per cent of its stake in the insurance provider. The group announced Friday morning that the shares were sold at an average price of 210p a piece, raising £630m, and reducing the group's stake to £427.4m, or 28.5%. If an over-allotment option is not exercised, RBS's stake will stand at 30.3%. The sale marks the company's third reduction in the FTSE 250 group in under a year; it first sold 34.7% at the initial public offering in October, following by another 16.8% in March. The cash proceeds will be used for general corporate purposes.Bruce Van Saun, RBS Group Finance Director, said: "This successful sale keeps RBS fully on track to meet its obligation to divest its stake in Direct Line by end-2014".NR