Lloyds Bank to price TSB IPO at below book value -sources
LONDON, June 8
LONDON, June 8 (Reuters) - Lloyds Banking Group will on Monday price the sale of a 25 percent stake in its TSB IPO-LLTS.L business at below its book value, according to industry sources.
Lloyds will publish the pricing and prospectus for an initial public offering of TSB shares on Monday, the sources said. The sale, which will take place before the end of June, will value TSB at between 0.7 times and 0.9 times its book, or net asset value of 1.6 billion pounds ($2.7 billion), the sources said, giving it a valuation of between 1.12 billion and 1.44 billion pounds.
Lloyds is obliged by European competition regulators to sell the 631 branches which now form TSB as a condition of receiving state aid during the financial crisis five years ago and it must therefore now sell the whole of TSB by the end of 2015. ($1=0.5956 British Pounds) (Reporting by Matt Scuffham; Editing by Greg Mahlich)