Royal Bank of Scotland Group PLC Raises $1 billion Million In Direct Line Share Sale-Reuters

Friday, 20 Sep 2013 03:50am EDT 

Reuters reported that Royal Bank of Scotland Group PLC said it has raised $1 billion (GBP630 million ) by selling a 20% stake in Direct Line Insurance Group PLC, the latest stage in an EU-ordered disposal of Britain's biggest motor insurer. RBS was ordered by European regulators to sell all of Direct Line - also one of Britain's biggest home and general insurers - before the end of 2014, as a penalty for its 2008 taxpayer bailout which left it 81% owned by the government. The sale was made at 210 pence a share, a 3.7% discount to Direct Line's closing price on September 19, 2013 and leaves RBS holding 427.4 million shares, a 28.5% stake.