Goldman Sachs to sell off a 7% stake in Hastings Direct
An investor group – headed by Goldman Sachs – will sell 46mln shares via a placing, raising just shy of £100mln in the process
A Hastings Group Holdings PLC (LON:HSTG) investment group headed by Wall Street giant Goldman Sachs has told the market it is selling off a 7% stake in the motor insurance business.
Hastings Investco Limited currently owns around 58% of the motor insurer’s shares but plans to reduce this to nearer 51% through a share placing.
The investors are selling 46.2mln shares at a price of 216p, a few pence short of today’s opening, valuing the transaction at around £100mln.
Alongside Goldman Sachs Merchant Banking division, Hastings Investco comprises non-executive directors Richard Brewster and Edward Fitzmaurice, as well as former director Keith Charlton.
Neil Utley, who masterminded the management buyout of the business back in 2009, is also one of the investors.
Hastings Group – based around the seaside town of the same name – has enjoyed a strong 2016, with the share price rising by nearly a third in the year-to-date.
The company itself will not receive any of the funds generated.
Shares dropped 4%, or 10p, to 219p.