Lloyds sets June date for TSB flotation

Lloyds Banking Group has announced plans to float a 25% stake in its TSB business next month in a bid to meet European rules on state aid for banks.

The sale of 25% of the business to private shareholders on the London Stock Exchange is set to take place in June and will be initially available to institutional investors and intermediaries, who will in turn facilitate distribution to retail clients. The terms of the sale entitles each retail investor to receive one free share for every 20 purchased up to a total amount of £2,000, as long as they are continuously held for at least a year post-IPO. In 2008, Lloyds was bailed out by the UK government, along with a list of rivals, but the new European competition rules require a gradua...