UK’s Lloyds Banking Group plc (LON:LLOY) said it would dispose of some 15% in domestic wealth manager St James’s Place plc (LON:STJ) as part of efforts to meet capital requirements.
Lloyds aims to sell about 77m St James’s Place shares to institutional investors through an accelerated bookbuild.
The vendor expects to realise a gain of some GBP40m (USD60.2m/EUR47m) on the sale, which it anticipates to boost its core tier 1 ratio by about one basis point. The price of the placing will be agreed with the sole bookrunner at the end of the process.
After this disposal, Lloyds will hold some 21% in St James’s Place, it said, adding that the 365-day lock-up period agreed after a prior sale in March will remain valid, with no possibility of being waved for a minimum of 180 days.
The wealth manager has GBP39bn worth of funds under administration on behalf of some 140,000 clients. Lloyds will continue to back the firm’s management.