Arbuthnot Banking Group PLC (LON:ARBB) is to sell the majority of its stake in subsidiary Secure Trust (LON:STB) for £145mln.
The corporate finance house will sell a 31.9% stake in the private bank to institutional investors at £25 per share reducing its holding to 20% from 51.9%.
Secure Trust will move to a premium listing on the main London stock market once the deal completes.
Sir Henry Angest, the majority owner, chairman and chief executive of Arbuthnot, will also stand down as Secure Trust’s chairman on completion.
“The growth of Secure Trust in the last four and half years has been substantial, and the Company believes that now is the appropriate time to reduce its holding in Secure Trust to a non-controlling position, in order to broaden the range of strategic options available to Secure Trust,” Arbuthnot said.
Shares in Secure Trust fell 8% to £25.75, while Arbuthnot rose 8% to £16.11.