Lloyd to sell stake in BOS

Lloyds-BOSLloyds Banking Group has decided to sell a major stake in the Bank of Scotland Integrated Finance, with its private equity wing, to Coller Capital wrapped up in a deal that totals the assets of the group at £480m.

The deal shall be finalized by paying Coller £332m for making a 70 per cent stake in the new joint venture called Cavendish Square Partners, with Lloyds taking the remaining 30 per cent.

The sale of approximately 40 private equity investments has entailed the value of the portfolio around £480m, and along with that, the small premium with regards to the book value of the same.

Lloyds has donned the venture since it saved the HBOS in a takeover which was declared in the month of September 2008, which required governmental support for itself.

Further the contentious joint finance unit took the equity bet in the groups as well as lending them the required debt.

But then HBOS incurred huge losses on the stakes they made, which they bought with a high price ranging in the market. This deal entailed Coller and its assets with a face value less than half the price with which it was acquired during the boom years.

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