LONDON – State-backed Lloyds Banking Group Plc says it plans to float 25 per cent of its unit TSB, another step forward in its burgeoning recovery.
The group was bailed out during the 2008 financial crisis, and the government holds a 25 per cent stake. Lloyds had to sell some 631 branches under European Union rules on state assistance — and spun the branches off into a rejuvenated TSB brand after a deal to sell them to Co-operative Bank collapsed.
The offer is expected to take place next month. Under the terms, each retail investor will be entitled to receive one free share for every 20 shares acquired and held for a year, up to a total of 2,000 pounds ($3,367).
The bank has until 2015 to sell the entire stake.