Lloyds bank announces joint venture with private equity firm
Britain's state-rescued Lloyds Banking Group said on Monday it had agreed to set up a joint venture with a private equity group, earning LBG 332 million pounds (401 million euros, 502 million dollars). "LBG plc is selling a portfolio of 40 private equity investments ... to a new joint venture called Cavendish Square Partners LLP," the group said in a statement to the London Stock Exchange.
"The new joint venture will be majority-owned (approximately 70 percent) by Coller Capital, a global leader in private equity secondary transactions, with Lloyds Banking Group owning a stake of approximately 30 percent."
Coller Capital will pay a total consideration of 332 million pounds, valuing the joint venture at about 480 million pounds.
Lloyds is 41.3-percent owned by the government after an enormous state bailout at the height of the global financial crisis.
The deal is part of Lloyds' wider strategy to sell off assets that are deemed to be surplus to requirements.
"This transaction is in line with the group's strategy of divesting assets which are not core ... and over the last twelve months the group has now sold six businesses, raising over 750 million pounds," it added on Monday.
© 2010 AFP