Insurer and advisory firm Towergate has put a payment protection insurance (PPI) division up for sale in a move aimed at paving the way for a possible stock market float, according to the Sunday Times.
The paper reported that Towergate, parent company of national IFA Towergate Financial, has put a £400 million price tag on PPI seller Paymentshield, with proceeds from the sale expected to be used to pay down group debt of around £850 million, part of a plan to make the company more attractive to investors.
The Sunday Times reported that Towergate had appointed Morgan Stanley to find a buyer for the PPI firm with potential buyers thought to include private equity investors.
Paymentshield was not caught up in the PPI mis-selling scandal that has engulfed many high street banks.
A spokeswoman for Towergate said the company would not comment on market speculation.