Lloyds to sell another 11.5% stake in TSB

Lloyds Banking Group is to sell another 11.5% stake in its TSB business, leaving it with a 50% holding in what promises to become a challenger to the UK's existing retail banking industry.

The group said on Thursday after the market closed it would sell another 57.5 million shares, worth around £161m pounds at the current share price. The sale, which is being advised by UBS, will target financial institutions through an accelerated bookbuild. Lloyds initially tried to sell off 27.5% of TSB in June at 260p per share through an initial public offering, but saw much stronger demand than expected for the shares. The sale was 11 times oversubscribed, as investors from the US and Asia piled into the stock, forcing TSB to expand the IPO to 38.5%of the business. Investors...