LONDON, Sept 25 (Reuters) - Lloyds Banking Group said it would sell a further 11.5 percent stake in TSB,leaving it with a 50 percent shareholding in a business it wasordered to sell by European regulators.
Lloyds said it would sell another 57.5 million shares, worthabout 161 million pounds at current share prices, in the bankthrough a sale to financial institutions. UBS is acting asbookrunner for the sale.
Lloyds was ordered to sell 631 branches, subsequentlyre-branded TSB, by European regulators as a condition of its20.5 billion pound ($33.4 billion) government rescue during thefinancial crisis.
Lloyds sold a 38.5 percent stake in the bank at 260 penceper share through an initial public offering in June. The priceof the latest sale will be decided after interest from potentialbuyers is assessed.
Shares in TSB closed at 280 pence on Thursday.
(1 US dollar = 0.6135 British pound) (Reporting by Matt Scuffham; Editing by Steve Slater)