Lloyds Banking Group has agreed to sell another 15% stake in St James Place (SJP) for GBP500 million (US$752 million) in a bid to improve its capital position.
In March 2013, Lloyds already sold a 20% stake in SJP – from it’s 57% stake in SJP – and agreed a 365 day "lock in" period when it could sell no more shares, but advisers Merrill Lynch have agreed to waive the agreement.
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The lock in will remain in place, however, for the rest of the year, and cannot be waived for at least 180 days, meaning the bank cannot sell its remaining 21%.
SJP has approximately 140,000 wealth management clients and GBP34.8 billion in funds under management.
According to Lloyds, the sale is due to the Prudential Regulation Authority’s assessment (PRA) that the bank has a capital shortfall, when the PRA found a GBP25 billion ‘black hole’ in the bank’s balance sheets, earlier in March.
Lloyds added it "continues to be supportive" of the SJPmanagement team.
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