UBS's second largest shareholder plans major stock sale

UBS Group's second largest shareholder, Singapore's influential GIC sovereign wealth fund, is looking to sell a sizeable chunk of shares in the Swiss bank.

UBS was told by GIC that it intends to sell up to 93m existing shares in UBS, equivalent to 2.4% of the total shares in issue, through an accelerated bookbuild offering to institutional investors.

The sovereign wealth fund became UBS' largest shareholder during the financial crisis as it stepped in with a series of rescue cash injections in 2007 and 2008, with the stake peaking at 7.07% in 2014.

Quarterly results from UBS in January showed net profit nearly halved, though chief executive Sergio Ermotti saw the backdrop improving.

"Although macroeconomic uncertainty, geopolitical tensions and divisive politics continue to affect client sentiment and transaction volumes, we have begun to observe improved investor confidence, primarily in the US, which may benefit our wealth management businesses."