Lloyds Banking Group PLC EC MANDATED BUSINESS DISPOSAL UPDATE (VERDE) (0818D)
April 24 2013 - 1:01AM
UK Regulatory
TIDMLLOY
RNS Number : 0818D
Lloyds Banking Group PLC
24 April 2013
24 April 2013
LLOYDS BANKING GROUP UPDATE ON EC MANDATED BUSINESS DISPOSAL
(PROJECT VERDE)
Lloyds Banking Group plc (the Group) is today providing an
update on its EC mandated disposal, known as Project Verde.
The Group has been informed that, despite the commitment of both
parties to the transaction, The Co-operative Group's Board has
decided that they can no longer proceed with a purchase of the
Verde business given their view of "the impact of the current
economic environment, the worsened outlook for economic growth and
the increasing regulatory requirements on the financial services
sector in general."
The Group now intends to divest Verde through an Initial Public
Offering (IPO), having maintained this option throughout the
process in order to ensure best value for our shareholders and
certainty for our customers and colleagues. It is expected that the
IPO will be subject to regulatory and EC approval, and an update on
the timing of an IPO will be given in due course.
The Group continues to make good progress in the creation of
Verde as a stand-alone bank. A strong management team is in place
and we have made good progress in creating segregated IT systems on
the proven Lloyds Banking Group platform and in building the
necessary corporate functions to support front-office colleagues,
branches and operational sites.
Detailed plans are in place for a rebranding of the business as
TSB which will be visible on the High Street during the summer of
this year, at which point the TSB Bank (Verde) will operate as a
separate business within Lloyds Banking Group.
There are no direct impacts to customers as a result of today's
announcements. Customers don't need to do anything and can carry on
banking in the same way as they do now, accessing their accounts as
usual via the branch, telephone and online banking. The Group is
committed to ensuring that the transfer to the TSB Bank is as
smooth as possible for customers and will seek to minimise any
disruption during this process.
António Horta-Osório, Chief Executive of Lloyds Banking Group
said:
"We are disappointed that The Co-operative Group is unable to
complete this transaction. However, we are well advanced in our
plans to bring the Verde business to the UK High Street during the
summer through the TSB Bank, and will now proceed with the option
to IPO the business, subject to the necessary approvals. The TSB
Bank will be an attractive retail and commercial bank that will
have around 630 branches across the UK, a strong management team
and will be a real challenger on the high street."
- END -
For further information:
Investor Relations
Charles King +44 (0) 20 7356 3537
Investor Relations Director
Email: charles.king@finance.lloydsbanking.com
Corporate Affairs
Matthew Young +44 (0) 20 7356 3522
Group Corporate Affairs Director
Email: matt.young@lloydsbanking.com
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with
respect to the business, strategy and plans of the Lloyds Banking
Group, its current goals and expectations relating to its future
financial condition and performance. Statements that are not
historical facts, including statements about the Group or the
Group's management's beliefs and expectations, are forward looking
statements. By their nature, forward looking statements involve
risk and uncertainty because they relate to events and depend on
circumstances that will or may occur in the future. The Group's
actual future business, strategy, plans and/or results may differ
materially from those expressed or implied in these forward looking
statements as a result of a variety of risks, uncertainties and
other factors, including, but not limited to, UK domestic and
global economic and business conditions; the ability to derive cost
savings and other benefits, including as a result of the Group's
Simplification programme; the ability to access sufficient funding
to meet the Group's liquidity needs; changes to the Group's credit
ratings; risks concerning borrower or counterparty credit quality;
instability in the global financial markets, including Eurozone
instability and the impact of any sovereign credit rating downgrade
or other sovereign financial issues; market-related risks
including, but not limited to, changes in interest rates and
exchange rates; changing demographic and market-related trends;
changes in customer preferences; changes to laws, regulation,
accounting standards or taxation, including changes to regulatory
capital or liquidity requirements; the policies and actions of
governmental or regulatory authorities in the UK, the European
Union, or jurisdictions outside the UK in which the Group operates,
including other European countries and the US; the implementation
of the draft EU crisis management framework directive and banking
reform following the recommendations made by the Independent
Commission on Banking; the ability to attract and retain senior
management and other employees; requirements or limitations imposed
on the Group as a result of HM Treasury's investment in the Group;
the ability to complete satisfactorily the disposal of certain
assets as part of the Group's EC state aid obligations; the extent
of any future impairment charges or write-downs caused by depressed
asset valuations, market disruptions and illiquid markets; the
effects of competition and the actions of competitors, including
non-bank financial services and lending companies; exposure to
regulatory scrutiny, legal proceedings, regulatory investigations
or complaints, and other factors. Please refer to the latest Annual
Report on Form 20-F filed with the US Securities and Exchange
Commission for a discussion of certain factors together with
examples of forward looking statements. The forward looking
statements contained in this announcement are made as at the date
of this announcement, and the Group undertakes no obligation to
update any of its forward looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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