Further to the announcement by The Royal Bank of Scotland Group plc ("RBS") on 12 March 2013, RBS has completed the sale of 252.3 million ordinary shares in Direct Line Insurance Group plc ("Direct Line Group") at a price of £2.01 pence per share, raising gross proceeds of £507 million, assuming the over-allotment is exercised in full.
RBS now holds 726.9 million ordinary shares of Direct Line Group, representing 48.5% of the issued ordinary share capital. If the over-allotment option is not exercised, RBS's remaining stake will comprise 749.9 million shares, equivalent to 49.99% of Direct Line Group's issued ordinary share capital.
The sale marks the continuation of RBS's EU-mandated disposal strategy, with cash proceeds being used for general corporate purposes.
Bruce Van Saun, RBS Group Finance Director commented, "We are pleased with the performance of Direct Line Group since the IPO in October 2012. This sale is part of our ongoing delivery against EU commitments and will take our ownership below the 50% level. We continue to execute well against the key milestones in our recovery plan".
About Direct Line Group
Direct Line Group is a financial services provider which sells and underwrites personal and SME business insurance over the phone, online and through brokers.
Direct Line Group's primary businesses include: Direct Line, Churchill, Privilege, Green Flag, NIG, TRACKER, and Brand Partners.
For the year ended 31 December 2012 Direct Line Group reported an IFRS profit before tax for the year of £249.1m and total assets of £12,697.9m.