Lloyds Banking Group Sells Bank Of Scotland Integrated Finance

5th Jul 2010 07:14

LONDON (Dow Jones)--Lloyds Banking Group PLC (LLOY.LN), a financial services group, said Monday it is selling a portfolio of 40 private equity investments in its Bank of Scotland Integrated Finance business to a new joint venture called Cavendish Square Partners LP. MAIN FACTS: -The new joint venture will be majority owned (approximately 70%) by Coller Capital, a global leader in private equity secondary transactions, with Lloyds Banking Group owning a stake of approximately 30%. -The total cash consideration for Coller Capital's majority stake is GBP332 million. -This values the portfolio at approximately GBP480 million, which is a small premium to current book value. -The impact of the sale on the Group's accounts is not expected to be material. -The Group held a competitive tender process before selecting Coller as its preferred bidder and will retain any associated corporate lending. -The companies in the portfolio are U.K. headquartered trading businesses across a range of industry sectors and the Group's retained stake will ensure that it will share in any potential future investment upside. -This transaction is in line with the Group's strategy of divesting assets which are not core to its strategy and over the last twelve months the Group has now sold six businesses, raising over GBP750 million. -Coller Capital has decided to retain the existing management team. -It will transfer under TUPE into a newly formed management vehicle responsible for the day-to-day management of the portfolio. -Transaction expected to complete in the third quarter of 2010. -Shares closed Friday at 54.7 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires July 05, 2010 02:14 ET (06:14 GMT)