Wednesday, October 3, 2012

Direct Line IPO, Hill Insurance

Royal Bank of Scotland has found buyers for the full 33% stake of insurer Direct Line it has put up for sale, within 3 days of the 9 day marketing period. It had set a price range of 160-195 pence last week. Direct Line would be worth £2.66bn at the mid-point of quoted price range.

Goldman Sachs and Morgan Stanely are running the offering, and are joint bookrunners together with UBS.

In another blow to Gibraltar insurance industry, Gibralatar-based Hill Insurance company is into liquidation.Court documents for the winding-up reveal the bonds it used as shareholders' equity were either non-existent or did not belong to the company.

This liquidation follows hot on the heels of Lemma insurance's liquidation last week.

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