The Spanish bank Banco Sabadell moved a step closer to taking over TSB today as a deal was secured valuing TSB at £1.7 billion.
TSB is recommending its shareholders accept the Spanish takeover, with Lloyds Bank confirming it has agreed a price for its remaining stake at 340p per share. This would mean that, subject to regulatory clearance, investors who bought stock at the offer price of 260p nine months ago can look forward to a 31 per cent premium.
Chief executive of Lloyds, Antonio Horta Osorio, told Sky News: “I am delighted to confirm we have agreed terms for the sale of our remaining stake in TSB to Sabadell.”
Lloyds stands to net £850 million from the 50 per cent of TSB it currently holds, but it has agreed to provide £450 million towards transition costs.