Lloyds opts to sell bigger stake in TSB unit
State-backed Lloyds Banking Group PLC has increased the number of shares it is selling in its TSB unit amid strong investor demand.
The bank, which was bailed out during the 2008 financial crisis, is now selling 35 percent of the unit, rather than the 25 percent initially planned. The opening price was put at 260 pence — an amount which valued the company at 1.3 billion ($2.2 billion.)
Lloyds says gross proceeds realized by the sale will be 455 million pounds.
The group has to float TSB to meet European Union rules on state assistance. It had planned to sell the 631 branches to Co-operative Group — but the deal collapsed when Co-op found a big hole in its own balance sheet.
Conditional trading began Friday.
Source: AP
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