Lloyds sells 11.5pc stake in TSB to help hit deadline set by European regulators

Lloyds expected to cut roles nationwide

Lloyds expected to cut roles nationwide

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LLOYDS Banking Group has sold a further 11.5 per cent stake in TSB in a £161m share placing to investors.

Lloyds said it had sold 57.5 million shares at 280 pence, leaving it with a 50 per cent stake in the smaller bank.

It means the bank has taken a further step towards meeting a deadline to sell all of TSB by the end of 2015, which was set by European regulators as a condition of Lloyds’ Government rescue during the financial crisis in 2009.

The demand for the shares is understood to have outstripped the number available several times over, enabling Lloyds to sell the shares to mainly long-term investors.

The sale attracted interest from investors in the US as well as mainland Europe, and buyers had been found to cover the sale within an hour of it being launched after the market closed on Thursday.

Investors were attracted by an exposure to Britain’s economic recovery, through a bank which is untainted by issues of past misconduct, according to industry sources.

They see TSB as a viable challenger to Britain’s “Big Four” banks – Lloyds, Royal Bank of Scotland, Barclays and HSBC.

TSB is one of a number of British banks that have either recently listed on the stock exchange, or indicated they are preparing to do so.

The success of the latest sale could encourage other banks that are considering listings.

Aldermore said on Monday that it planned to list in London next month, in a debut that could value it at up to £900m.

Virgin Money, backed by entrepreneur Richard Branson, is expected to list later this year while Santander UK is also considering its options.

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