Lloyds sells second chunk of TSB for £161m

Lloyds Banking Group has sold down a further 11.5 per cent stake in TSB for £161m.

The placing of 57.5 million shares at 280p each was brokered through bookrunner UBS Investment Bank and will be completed on 1 October.

Government-backed Lloyds will now have 50 per cent of the company.

It listed TSB on the London Stock Exchange in June, selling 38.5 per cent of the business for £455m.

The original 25 per cent stake was boosted because of exceptional institutional demand.

The 260p listing price peaked at 298p at the close of 24 June and traded at 279p at 10.25am today.

Lloyds was forced to divest TSB because of European Union regulations on state aid for businesses.