Lloyds To Sell Remaining 21% Stake In St. James's Place

(RTTNews) - Lloyds Banking Group plc (LYG, LLOY.L) said Monday that it plans to sell its remaining 21 percent stake in wealth manager St. James's Place plc (STJ.L) as part of the company's efforts to focus on its core UK retail and commercial banking operations. The British lender said that on completion of the placing, it will realize a net gain of about 95 million pounds, or $156.33 million.

Lloyds, Britain's largest mortgage lender, will sell about 109 million ordinary shares in St. James's Place in the proposed placing, which follows the expiry of the 180-day unwaivable lock-up period agreed between Lloyds and Bank of America Merrill Lynch at the time of the placing of shares in St. James's Place announced on May 22, 2013.

Shares of St. James's Place closed Monday's trading on the London Stock Exchange at 643.50 pence, valuing the 21 percent stake at 701.4 million pounds, or $1.15 billion.

According to Lloyds, institutional shareholders will be sought for the placing shares on its behalf by Bank of America through an accelerated bookbuild. The company added that the price at which the placing shares are to be placed will be agreed by Lloyds and Bank of America at the close of the bookbuilding process.

St James's Place is a FTSE 250 company that provides wealth management services to individuals, trustees and businesses. As of September 30, 2013, the company had around 180,000 wealth management clients and 42 billion pounds in funds under management.

On a pro forma fully loaded CRD IV basis, Lloyds estimates that the sale will increase its common equity tier 1 capital by about 670 million pounds, or 24 basis points.

Lloyds and other European lenders are divesting real estate portfolio to boost their cash reserve and to adhere to new regulations. Lloyds has been grappling with tough times after its merger with HBOS and received a government bailout of 20 billion pounds during the 2008 financial crisis.

Earlier on Monday, Lloyds said it has agreed to sell a portfolio of UK corporate real estate loans to Promontoria Holding 87 B.V., for 90 million pounds in cash, as part of the group's continued non-core asset reduction program. Promontoria is an entity affiliated with Cerberus European Investments, LLC.

In late November, Lloyds said it will sell a corporate real estate portfolio to Promontoria for 1.032 billion euros in cash, or about 860 million pounds. That deal comprised non-core European and Nordic loans.

Further, Lloyds said on December 6 that it has agreed to sell a portfolio of non-performing Irish retail mortgages to Tanager Limited, an entity affiliated with Apollo Global Management, LLC (APO), for 257 million pounds.

On the London Stock Exchange, LLOY.L closed Monday's trading at 78.20 pence, down 0.04 pence or 0.05 percent on a volume of 80.62 million shares.

STJ.L closed Monday's trading at 643.50 pence, up 6.50 pence or 1.02 percent on a volume of 262,157 shares.