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Towergate paves way for float as it puts PPI arm up for sale

Towergate paves way for float as it puts PPI arm up for sale

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.

In June 2011, former Aviva UK chief executive Mark Hodges (pictured) left the provider to head Towergate with the aim floating the company within the next three to four years.

A spokeswoman for Towergate said the company would not comment on market speculation.

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