RBS Settles 2008 Shareholder Rights Issue Litigation

By Razak Musah Baba

LONDON--Royal Bank of Scotland Group PLC (RBS.LN) has agreed to pay out up to 800 million pounds ($1.02 billion) in a shareholder rights issue litigation to help reduce further cost.

RBS, which is 73% owned by the U.K government, said Monday it has concluded a full and final settlement with three out of the five shareholder groups representing 77% of the claims by value in the 2008 shareholder rights issue litigation.

In total, the bank said it is willing to make available settlement sums of up to GBP800 million assuming settlement of all claims, to be split among all five shareholder groups, subject to agreement and claim validation. The total settlement amount of up to GBP800 million is covered by existing provisions.

"We have been very clear that we wanted to deal with as many of our legacy litigation issues as possible during 2015 and 2016. We are pleased to have reached this agreement and hope that it will be accepted by the remaining claimant group(s) so that this long course of complex and costly litigation can now be concluded," Chief Executive Ross McEwan said.

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

(END) Dow Jones Newswires

December 05, 2016 02:41 ET (07:41 GMT)

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