The Royal Bank of Scotland was able to raise GBP 630 million or USD 1 billion through by selling the shares it holds in a motor insurance subsidiary. The bank sold 300 million shares from Direct Line, the largest motor insurer in Britain and one of the biggest home and general insurance firms in the world. Each share was sold at 210 pence apiece.
The sale was done by RBS to comply with the conditions of its 2008 bailout using taxpayer dollars. European regulators ordered the bank to divest itself of Direct Line before the end of next year. Finance Director Bruce Van Saun of RBS said, "This successful sale keeps RBS fully on track to meet its obligation to divest its stake in Direct Line by end-2014."
The sale came in the midst of additional potential lawsuits coming on the bank's way over the share offer it conducted in 2008 before it was bailed out by taxpayers in the UK.
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