Lloyds agrees TSB sale to Spanish bank in £1.7bn deal
The group has agreed to sell its entire 50 per cent stake in TSB for 340p per share – a 29 per cent premium on TSB’s closing price prior to bid – subject to regulatory approval.
It will initially sell a 9.99 per cent stake in the bank for £170m to be completed by 24 March 2015, and has agreed to sell the remaining 40.1 per cent stake for 340p per share.
The deal meant Lloyds is in line for a maximum £850m payout to be used for “general corporate purposes”.
Investors who bought shares under a bonus scheme agreement in the initial public offering last June will receive compensation should the deal go ahead before 25 June this year, Lloyds said.
They will be compensated at 340p per share should the deal not go ahead.
Lloyds Banking Group group chief executive António Horta-Osório said: “I am delighted to confirm we have agreed terms for the sale of our remaining stake in TSB to Sabadell.
“This is a significant and positive step for the Group and will enable us to meet our commitments to the European Commission, well ahead of its mandated deadline.”