Lloyds Nets US$596 million from Share Sale

By Marc Castro

Mar 13, 2013 05:32 PM EDT

The amount of GBP400 million or US$596 would be gained by Lloyds Banking Group Plc after it sold off part of its interest over St. James Place Plc. The biggest mortgage lender in the UK continues to face pressure from the government to raise capital.

The interest in St James Place would now be at 37% after Lloyds sold 102 million shares in the company. The firm earned profits well above its projected sale proceeds between GBP350 million and GBP 400 million. Each share sold went for 510 pence in value.

Current Lloyds CEO Antonio Horta-Osorio is on pace to reduce the balance sheet to ensure financial stability after its bailout by the UK government during the 2009 financial crisis. The main problem area was its non-core division, whose value has declined to 49% of pre crisis levels or just GBP 98 billion in the last two years. The St James Place interest came along with the HBOS Plc purchase back in 2008.

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