Lloyds Banking Group is planning to float its 631-branch subsidiary, TSB, on London Stock Exchange (LSE), amid fears over an independent Scotland, according to The Telegraph.
The decision comes at a time when Lloyds is preparing to launch a £1.5bn IPO to divest approximately 50% stake in TSB, which will be placed into TSB Banking Group plc registered in London.
Go deeper with GlobalData
The move implies that TSB will be subject to English law, despite its holding companies both TSB Bank plc and Lloyds are incorporated in Scotland.
A Lloyds spokesman stressed that TSB "will remain a Scottish bank" because that is where it is licensed.
The changes, which are subject regulatory approval, will not affect customers, as they will be served by Scotland-registered TSB Bank plc and remain covered by the Financial Services Compensation Scheme, reported the news agency.
A TSB spokesman said: "Establishing new companies as part of a listing or IPO process is standard practice… The completion of the restructure is subject to regulatory approval."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
