![]() ![]() Lloyds TSB is and remains a great place to bank.” ![]() Our customers can feel confident that their money is secure. Our trading update underlines that our core business is strong and growing. Lloyds TSB’s already robust financial position is further enhanced by today’s capital raising which in turn allows us to drive forward with our plans to acquire HBOS. “Today’s news is good for investors and customers alike. The acquisition brings together two of the strongest retailers in UK financial services and accelerates Lloyds TSB’s stated strategic aim to build the UK’s best financial services group based on growing sustainable earnings streams and on deep customer relationships.Ĭommenting on the developments, Sir Victor Blank, Chairman of Lloyds TSB said: The enlarged group will have excellent breadth and balance with strong positions in retail, corporate banking, SME business banking and long term savings. Lloyds TSB believes that the acquisition of HBOS will create a compelling business combination offering substantial benefits. In addition, £17 billion of capital will be raised, of which £11.5 billion (£8.5 billion in ordinary shares and £3 billion in preference shares) will be raised by HBOS and £5.5 billion (£4.5 billion in ordinary shares and £1 billion in preference shares) by Lloyds The Takeover Panel has given its consent to the revision of terms. The Board of HBOS has also agreed to recommend these revised terms to its shareholders. The Board of Lloyds TSB intends to recommend that Lloyds TSB shareholders vote in favour of the necessary resolutions to be proposed to Lloyds TSB shareholders at the Lloyds TSB general meeting. At the same time, an offer will also be made to HM Treasury to exchange HM Treasury preference shares in HBOS for equivalent preference shares in Lloyds TSB. The revised terms agreed with HBOS are that HBOS shareholders will receive 0.605 Lloyds TSB shares for every 1 HBOS share. Based on these discussions, the current market environment and the future prospects of the enlarged group, the Boards of Lloyds TSB and HBOS plc HBOS.L have agreed to proceed with a recommended offer for HBOS on revised terms. The Board of Lloyds TSB has carefully considered the best interests of its shareholders in these circumstances and has had discussions with HM Treasury on the additional capital which the UK Government requires Lloyds TSB to have if it is to access the Government backed provision of liquidity. In the context of unprecedented turbulence in global financial markets the Board of Lloyds TSB Group plc (Lloyds TSB) welcomes the action that the UK government has taken over the last week to stabilise the UK banking system for the benefit of deposit holders, shareholders, customers and the UK economy as a whole. LONDON (Reuters) - The following is a statement from Lloyds TSB on revised terms for the acquisition of HBOS and the raising of 5.5 billion pounds of new capital: ![]()
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