LONDON (Alliance News) - Lloyds Banking Group PLC Friday said it raised GBP161 million by selling 57.5 million shares in TSB Banking Group at 280 pence each, a sale that leaves it with about a 50% stake in the business it has spun out.
In a statement Friday morning, Lloyds said the latest share sale representing around 11.5% of TSB's issued ordinary share capital. It added that it expects to continue consolidating TSB's financial results in its own accounts.
The shares were offered to institutional investors by way of an accelerated bookbuild.
"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 announcing the share placing late Thursday.
TSB is the seventh largest retail banking group in the UK by branch network. Lloyds sold a 38.5% stake in the business when it listed it in London in June. Lloyds must fully divest the revived network of TSB branches by the end of 2015 as a condition of the state aid it received in the wake of the financial crisis.
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 and Steve McGrath; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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Lloyds (LLOY)