The Hindu : Business : Lloyds, Royal Bank of Scotland to sell assets

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Wednesday, Nov 04, 2009
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Lloyds, Royal Bank of Scotland to sell assets

LONDON: Bailed out British banking majors Lloyds Banking Group and the Royal Bank of Scotland have agreed to sell part of their businesses, a move that will bring down their dependence on taxpayers’ money.

The British government holds 43 per cent stake in Lloyds and about 70 per cent in RBS, following their rescue in the wake of the financial meltdown.

In a statement on Tuesday, the U.K. Treasury said the government had agreed restructuring plans for RBS and Lloyds that included the divestment of a significant proportion of their retail and corporate banking assets over the next four years. “The divestments from each bank will represent a viable stand-alone entity, together representing nearly 10 per cent of the U.K. retail banking market,” it noted. Separately, Lloyds said it would be raising 21 billion pound, which includes rights issue worth 13.5 billion pound. The remaining amount would be mopped up through an exchange offer of securities. — PTI

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