Royal Bank Scotland slips more than 1% after Reuters reports the company has begun winding down its global shipping finance business, ending efforts to sell it off during a worsening downturn across the freight industry.
Shipping industry sources have told Reuters that RBS had been trying to sell its Greek shipping business, valued at around $3 billion, for more than a year.
A source close to RBS told Reuters the bank had opted for an overall wind down as offers received for the Greek business, the most prominent part of its shipping assets, did not match the value it wanted.
RBS believed an orderly wind down over the next few years until the loans reached maturity would represent the best option for shareholders rather than asset sales at distressed prices, the source said.
The bank expected to cut 20 to 25 jobs in shipping, with around 10 people expected to stay on to run the business down, the source added. Other sources have said the Greek shipping business had employed around 40 people.
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