Following orders by European regulators to sell off any stake in the TSB exceeding fifty percent, the Lloyds bank has announced that it would sell the rest of the shares at current prices.

Lloyds Bank sells stake in TSB

Lloyds Bank sells stake in TSB

The bank confirmed its decision to sell shares excessive of fifty percent on Thursday this week which amounts to 57.5 million shares which amount to 161 million GBP when calculated at current share prices. The shares are offered to financial institutions and the institutions that are willing to buy a stake in TSB will be able to do so through accelerated bookbuild. The sale activities are advised by USB.

The decision however formally announced on Thursday, was leaked as early as Tuesday and the bank confirmed it yesterday. The bank has already sold about 38.5 percent of its share in TSB in June this year for 260 pence per share through an initial public offering. By initiating the offering, it was named as the seventh largest bank of Britain and valued at 1.3 GBP at that time.

Several investors demanded the shares and the sale itself was oversubscribed by 11 times strong demand. Most of the investors were from the US, Asia and Britain. Although the Lloyds bank made the headlines for misconduct in the past, it has been one of the strong reasons for the recovery of the British economy after the recession. Hence, investors held it in high esteem even though its past records are stained.

Investors saw TSB as a strong challenge to the Big 4 banks of the UK, i.e., Lloyds, Barclays, Royal bank of Scotland and HSBC. In the past, European regulators have forced Lloyds to sell 631 branches which have made TSB that gained about 20.5 billion GBP for rescue from financial crisis. The share price will be determined after assessing the interest from investors on Thursday.