Lloyds Banking Group has announced plans to sell a further 11.5% stake (57.5 million shares) in TSB Banking Group in a private placement to institutional investors, under orders from the European regulators.
Following the sale of these shares worth about £161m, the lender will have about 50% shareholding in TSB.
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Lloyds, partly owned by the British government, has been ordered to shed itself of 631 branches of the TSB network, under the terms of a government bailout of £17 billion during the financial meltdown.
According to the regulators, the breakup can help boost consumer choice in the British banking industry.
The price for the new stake sale has not been disclosed yet, but the group has disclosed that the cash proceeds from the sale will be utilized for general corporate purposes.
The group has also revealed that the transaction is unlikely to have any material impact on the group.
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By GlobalDataEarlier in June, Lloyds aimed to sell almost 25% of TSB’s shares in its IPO, but sold only 38.5% shares owing to strong investor demand.
It plans to sell its remaining stake in TSB by the next year end.
