RBS prices Direct Line at 175p
Royal Bank of Scotland(RBS) said it had priced Direct Line at 175p a share, valuing the insurance firm at over 2.6 billion pounds.
Royal Bank of Scotland(RBS) said it had priced Direct Line at 175p a share, valuing the insurance firm at over 2.6 billion pounds.
The offer comprises 450m existing shares, representing 30 per cent of the 1.5bn total, raising RBS £787m.
RBS had said it would float the firm at between 160p and 195p a share.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Following admission, the bank will continue to hold 65.3% of the total shares in Direct Line, which owns the Churchill and Privilege brands as well as the breakdown service Green Flag.
RBS Group Finance Director, Bruce Van Saun, said the initial public offering was an important milestone in the bank's restructuring plan.
"We believe Direct Line is on the path to a bright future," he said.
RBS, which is 82% owned by the UK taxpayer, is being forced to sell Direct Line by the end of 2014 under EU state aid rules after the government was forced to give it a £45bn bailout in 2008.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Higher rates are disappearing – should you fix your savings?
Fixed savings rates have dropped to their lowest levels in over a year. Should you fix your savings now ahead of a potential base rate cut in November?
By Katie Williams Published
-
Nine million people fall victim to financial scams, says Citizens Advice
The charity says that around one in five people across the UK have been caught out by a finance scam in the past year - here is how to protect your money
By Chris Newlands Published