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LONDON (Alliance News) - Lloyds Banking Group PLC Thursday said it plans to sell 57.5 million shares in TSB Banking Group, representing around 11.5% of the company's issued ordinary share capital.
Lloyds said following the sale it expects to retain approximately 50% of the issued share capital of TSB. It is expected that TSB will continue to be consolidated within the Lloyds Banking Group accounts, the company said.
The placing shares are being offered to institutional investors by way of an accelerated bookbuild.
The price at which the placing shares are to be placed will be agreed by bookrunner UBS and Lloyds Bank at the close of the bookbuild process and will be announced in due course.
"The cash proceeds from the sale will be used for general corporate purposes and the transaction is not expected to have a material impact on the group, including its capital position," Lloyds said in a statement.
TSB is the seventh largest retail banking group in the UK by branch network and was launched in September 2013.
TSB Banking Group PLC was listed on the London Stock Exchange in June, at which time Lloyds sold 38.5% of TSB's shares in issue.
Lloyds shares closed up 1.1% at 76.23 pence Thursday, while TSB shares closed up 0.1% at 280.00 pence.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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