30th Jun 2015 07:23
LONDON (Alliance News) - Banco de Sabadell SA's takeover offer for TSB Banking Group PLC has become unconditional after the Spanish bank's move won approval from Bank of England regulators, confirming Lloyds Banking Group PLC's disposal of the bank.
In a statement, Sabadell said the Prudential Regulation Authority, part of the Bank of England, gave its approval to the change of control of TSB.
European regulators had previously cleared the deal, which values TSB at GBP1.7 billion.
TSB shares are to be cancelled from the London Stock Exchange on or around July 28.
Including the 9.99% stake in TSB already taken by Sabadell, the Spanish lender owns, or has received valid acceptances for, about 87.99% of the bank.
Lloyds Banking Group, which sold the 9.99% stake to Sabadell, noted the disposal of its remaining 40.01% stake in TSB for about GBP680 million.
FTSE 100 bank Lloyds was forced to dispose of TSB by the European Commission following its GBP20 billion bailout by the UK government in the midst of the financial crisis of 2007-09.
Lloyds shares were down 0.7% at 85.28 pence on Tuesday morning, and TSB shares were up 0.6% at 340.50p.
By Samuel Agini; [email protected]; @samuelagini
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