TSB agrees to £1.7bn takeover by Spanish bank

Lloyds Banking Group has agreed to sell its shareholding in TSB to Spanish bank Sabadell, in a deal which will value the bank at £1.7bn.

Following on from the offer made for TSB earlier this month, Lloyds has agreed to sell its entire 50% stake in TSB for 340p per share - a 29% premium on TSB's closing price prior to bid - subject to regulatory approval. It will initially sell a 9.99% stake in the bank for £170m, to be completed by 24 March 2015, and has agreed to sell the remaining 40.1% stake for 340p per share. The deal means Lloyds is in line for a maximum £850m payout to be used for "general corporate purposes". Investors who bought shares under a bonus scheme agreement in the TSB initial public offering last J...