Lloyds Banking Group will make £450m from selling a further 15 per cent stake in St James’s Place.
Yesterday, reports stated the bank would net £500m from the sale, although an announcement to the stock exchange this morning reveals this figure will be around £450m.
The sale will take place on 29 May. On completion Lloyds will hold 110 million St James’s Place shares, which equates to roughly 21 per cent of the advice firm’s total shares.
Lloyds sold a 20 per cent stake in the firm in March and agreed a 365 day “lock-in” period when it could sell no more shares, but advisers Merrill Lynch has agreed to waive the agreement.
The lock-in will remain in place for the rest of the year, and cannot be waived for at least 180 days, meaning the bank cannot sell its remaining 21 per cent.
Lloyds says the sale is due to the Prudential Regulation Authority’s assessment that the bank has a capital shortfall.
The PRA found a £25bn black hole in bank balance sheets in a report published in March this year.